Research on working life and its development
The length and timing of working life and the earnings received during that period in life affect the pension accumulation on an individual level. On a system level, working lives affect the financial sustainability of the pension system. The socio-political aims of extending working lives and raising the employment rate increase the need for research data on the subject.
Under the research programme, we will do research on stages of and changes to working life that are significant from the point of view of pensions, and on the length of working life and income and related changes per population groups. A central subarea of our research is the labour market participation of the oldest working-age population. In addition, we focus on the early and mid-stages of working life and changes to and interruptions in working life. An increasing number of persons work in retirement. Under this research programme, we will therefore examine how common it is for people in Finland to work while drawing a pension and the underlying reasons for doing so.
New studies
Rising retirement age extends working career and strengthens public financing
A three-month increase in the retirement age has increased employment significantly between the old and new retirement age. However, at the same time, unemployment, disability and inactivity has risen. This is primarily due to the lingering effects of the previous labour market state. Gender differences are not large, but the effects vary considerably across education, income, employment sector and self-employment status. A one-month increase in the retirement age has generated 34 million euros into the state’s coffers per cohort. The article was published in the Journal of Pension Economics & Finance.
More on other sites:
- Research article: Increasing Statutory Retirement Age, Labor Market Outcomes and Effect Heterogeneity: The 2017 Pension Reform in Finland (Cambridge University Press)
- Parallel publication of the article (Julkari)
The number of people with partial work ability is growing, and an increasing share are employed
The self-rated work ability has improved in the 2000s among those over 50 but declined among young age groups. The number of people with a partial work ability has increased especially among the unem-ployed. Of them, nearly half assessed themselves as partially disabled. Numerically, the highest number of persons with a partial work ability can be found among those in employment. The employment rate among the partially disabled has increased particularly among the over-50-year-olds. The study, based on data collected by the Finnish Institue for Health and Welfare, was published in the journal “Työpoliittinen aikakauskirja’” (Journal of labour policy).
More on other sites:
Years-of-service pension does what it was designed for, but reaches only a limited group
The earnings-related pension introduced as part of the 2017 pension reform seems to work as planned – as a special pension for those who have worked in arduous jobs for a long time. A study by the Finnish Centre for Pensions shows that years-of-service pensioners have an average working life of 44 years at the age of 63 and have been exposed to physical stress during their working life.
Read more on Etk.fi:
More on other sites:
Finnish working careers are slowly getting longer
The overall length of careers is growing rather slowly. A new study by the Finnish Centre for Pensions reveals that, for most Finns, working careers have lengthened, but for some, they have become even shorter than before.
Read more on Etk.fi:
More on other sites:
Social norms influence retirement decisions
In addition to economic factors, social norms play a crucial role in shaping the behaviour of both employees and employers. With the implementation of pension reforms, perceptions regarding the “normal” retirement age have evolved, leading employers to adopt a more favourable attitude towards older workers. Extendind working careers will be even more difficult in the future. The extension of working careers will depend significantly on the development of older workers’ work ability and the opportunities available for those with partial work ability to engage in the workforce.
More on other sites: