Research on Retirement
An extension of working lives requires a rise in the average effective retirement age. Therefore it is important that we study the routes to retirement. At the Finnish Centre for Pensions, we monitor and study the frequency and the effects on retirement of the new pension types: the years-of-service pension and the partial old-age pension. We also need data on the financial incentives of the pension system and how they affect the different population groups. In addition to the effective retirement, we also review the retirement intentions of the population and how employers relate to, for example, the employment of the elderly.
The working life of many ends when they retire on a disability pension. The number of starting disability pensions has decreased in recent years, while the number of partial disability pensions and cash rehabilitation benefits has increased. We also study the differences between population groups regarding the disability pension risk in various disease categories and the connection between retirement and health, work ability as well as working conditions.
In recent years, working while drawing a pension has become increasingly common. We produce data on the frequency and development of working while receiving a pension. In addition, we examine the pension reforms of other countries and how these reforms have affected the retirement age.
Current research projects
- Employment of disability pension retirees
- Impact of company-level factors on retirement on a disability pension
- Register study of time before a disability pension, II
- Study of the years-of-service pension
- Who retires on a partial old-age pension?
- Working while drawing an old-age pension
- Work-to-retirement trajectories
Aim: The disability pension contribution of large companies is determined based on the companies’ disability risk and the contribution category defined by it. This own risk is used to encourage companies to prevent the disability of their employees. None of the studies of the current system indicate clearly, however, that the experience rating model would significantly reduce the sickness benefit or disability pension expenditure. However, the views of the employers have not been investigated. The aim of our project is to find out how familiar employers are with the experience rating model and how it is seen to affect companies’ prevention of disability and recruitment decisions.
Realisation: We will conduct a questionnaire survey with employers about the experience rating model of disability pensions and its incentive effects. The project will be carried out by our Research and Planning Departments.
Researchers: Jyri Liukko, Anu Polvinen ja Meeri Kesälä
Aim: It is possible to work while drawing a disability pension. Nearly 80 per cent of the partial disability pension recipients and approximately 10 per cent of the full disability pension recipients work alongside retirement. In this study we will examine how disability pension retirees with an income from work differ from the rest of the disability pension recipients in terms of, among other things, education, socioeconomic standing, field of business, previous earnings and marital status. We will also review working while drawing a disability pension based on the underlying reasons for the disability pension.
Realisation: Our study will be based on a 10-per-cent random sample of the population living in Finland in 1995-2012 compiled by Statistics Finland as well as the register data of the Finnish Centre for Pensions.
Researcher: Anu Polvinen
Aim: Workplaces can take various measures to prevent and defer their employees’ retirement on a disability pension. In this study, we examine the importance of company-level risk factors on retirement on a disability pension and occupational rehabilitation. Our research questions include the following:
• do employer-level factors make a difference on retirement on a disability pension when the indi-vidual-level factors have been taken into consideration, and
• which register-based structural features that describe the employers may be connected to retire-ment on a disability pension.
Realisation: Sample of workplaces and their employees drawn from the register data of the Finnish Centre for Pensions. The data will be combined with the data on retirement on a disability pension. We use multilevel analysis to examine the associations of workplace-level factors to retirement on a disability pension.
Researchers: Mikko Laaksonen, Jyri Liukko, Juha Rantala, Anu Polvinen, Meeri Kesälä, Jarno Varis and Susan Kuivalainen (Finnish Centre for Pensions)
Aim: In order to reduce the number of starting disability pensions, it is important to know which factors contribute to the likelihood of retirement on a disability pension and which routes lead to retirement. The aim of this study is to use extensive, nationally representative data to produce current information on the events and development that lead to retirement on a disability pension. The study is a continuation of a project that ended in 2015 in which we studied what happened before retirement on a disability pension, that is, periods of sickness allowance, rehabilitation and unemployment.
Realisation: The study is based on data that combines the register data of the Finnish Centre for Pensions and Kela.
Researchers: Mikko Laaksonen, Anu Polvinen (Finnish Centre for Pensions); Jenni Blomgren, Annamari Tuulio-Henriksson, Lauri Virta, Karoliina Koskenvuo, Hannamari Heinonen (Kela); Laura Salonen (University of Turku)
Aim: The years-of-service pension will be introduced as a new pension type in Finland as of the beginning of 2018. The aim of our study is to examine the phases leading up to the application of a years-of-service pension and related individual and institutional factors. We will also look at questions and possible problems relating to the implementation and application of this new pension type.
Realisation: We will begin collecting document data (for example, pension applications, employer and medical statements) as of the beginning of 2018.
Researchers: Jyri Liukko, Mikko Laaksonen end Anu Polvinen
Aim: In this study, we focus on people who have retired on a partial old-age pension in the first year since this pension benefit was introduced. We examine which factors contribute to an increased likelihood of retirement on a partial old-age pension. We use statistical analysis to investigate the link between individual factors and retirement on a partial old-age pension.
Realisation: From the registers of the Finnish Centre for Pensions, we pick the persons who were entitled to retire on a partial old-age pension in 2017. We examine who of them have retired and, using descriptive study methods and regression models, which factors have predicted that they were likely to retire on a partial old-age pension.
Researchers: Noora Järnefelt, Sanna Tenhunen, Satu Nivalainen and Janne Salonen
Aim: The aim of this study is to examine how people who draw an old-age pension and have an income from work differ from other people on an old-age pension in terms of, for instance, education, socioeconomic status, income, gender or marital status.
Realisation: Our study will be based on a 10-per-cent random sample of the population living in Finland in 1995-2012, compiled by Statistics Finland.
Schedule: 2017 – 2018
Researchers: Anu Polvinen, Juha Rantala and Susan Kuivalainen
Aim: In our study we will identify, describe and analyse the trajectories through which people have retired on an old-age pension after the 2005 pension reform. Using sequence analysis, we will identify the trajectories that lead from work to retirement by identifying similar transition histories from register data. In this study, we will review how certain trajectories are chosen and the connection between exit routes and pension level.
Realisation: The project will be realised in the form of two or more studies, which will be published as articles in international scientific journals. The studies will be primarily based on the register data of the Finnish Centre for Pensions and Statistics Finland.
Researchers: Arie Riekhoff (University of Tampere) and Noora Järnefelt (Finnish Centre for Pensions)