Increment for late retirement increases total pension
The accrued pension increases if a person continues to work beyond their retirement age, thanks to both the increment for late retirement and the additional pension accrued for continued working.
Press releases
Light entrepreneurship on the upswing in Finland – improves employment but places many in a vulnerable labour market position
The number of light entrepreneurs has grown rapidly in recent years. At the same time, the profile of light entrepreneurs has changed: they are increasingly younger, of foreign origin and have only a basic education. The Finnish Centre for Pensions’ study examines, for the first time, the careers, income and pension accrual of light entrepreneurs in Finland over a period of several years.
International comparison of investment returns: Inflation ate into Finn’s real returns
The investment year 2023 was challenging for pension funds in different parts of the world. The average real return of pension investors was less than 2 per cent. The yield of Finnish pension funds was even worse. Due to high inflation, the average real return 0.2 per cent negative. The average real return of Swedish pension funds was 1.2 per cent negative.
Average pension in Finland nearly €2,000
The Finnish average pension developed positively in 2023. At the same time, total pension expenditure increased – pensions were paid out totalling almost 38 billion euros. About 1.6 million Finns received a pension in 2023.
The success story of Finnish pensions in an easy-to-read package
The recently published book Understanding Finnish Pensions tells the success story of Finnish pensions. Pension are an essential part of a welfare society and play a role in everyone’s life. Yet pension are not very well known. Read more about the easy-to-understand and concise book, as well as about rehabilitation refusals, pension taxation and pension …
Quality of life improves after retirement despite perceived lower income
The majority of respondents feel that their quality of life has improved after retirement on an old-age pension, with more leisure time increases and better coping skills. However, income is perceived as weaker, according to a survey conducted by the Finnish Centre for Pensions among people who had recently retired from gainful employment with an old-age pension.
A more comprehensive calculation of pension assets: Modest growth continues
The assets of Finland’s earnings-related pension scheme will continue to grow moderately in the coming years but will accelerate around 2040. The upward pressure on the average contribution is around one percentage point, the Finnish Centre for Pensions estimates in a report. The new report extends the long-term projections of 2022.
Effective retirement age above target
Finns continue to extend their working lives. Last year, the average effective retirement age was 62.8 years. At the same time, the number of new pensioners fell significantly.
What would keep people working longer? – Both money and employer attitudes have an impact
According to a recent survey of newly retired people, financial incentives have contributed to later retirement for about one third of the respondents. However, just under one third feel that employer encouragement, improved leadership skills or valuing the experience of older workers would have persuaded them to continue working.
Majority does not cut down on working while drawing a partial old-age pension
Many persons who draw the partial old-age pension continue working as before, with-out changes to their wage level. Only every fifth person on this pension benefit seems to have cut down on working. This is evident in a recent study by the Finnish Centre for Pensions.