New Pension Benefits and the Pension Reform
The website New pension benefits and the pension reform shows how the 2017 pension reform affects the statistics . The pension reform introduced two new pension benefits: the partial old-age pension and the years-of-service pension. The reform also raises the retirement age gradually.
Retirement increasingly deferred
So far, raising the retirement age by three months per age cohort seems to work as planned.
The first time the retirement age rose by three months (in 2018), 10,000 persons deferred retirement. Another three months to the retirement age in 2019 and 2020 deferred retirement further in the same way.
The majority of workers have continued working to their new retirement age. The change in retirement age has thus led to continued working. This is also evident in the rising employment rate among the 63-year-olds in the labour force survey of Statistics Finland.
The rising retirement age has also increased the number of new retirees on a disability pension among those approaching their retirement age. However, the change is moderate compared to the number of persons who have deferred retirement.
The number of unemployed persons approaching their retirement age has remained on the same level in recent years. Raising the retirement age has not had a significant effect on that figure.
Every fifth recipient of a partial old-age pension has past the retirement age of their age cohort
At year-end 2020, a total of 29,000 partial old-age pensions were in payment. Men accounted for 58 per cent of the partial old-age pension recipients.
Nearly 90 per cent had taken out 50 per cent of their accrued pension, making the average monthly partial old-age pension 810 euros. The monthly median pension for the 50-per-cent partial old-age pension was 720 euros. An ample 4,000 persons received a 25-per-cent partial old-age pension at year-end 2020. Their average monthly partial old-age pension was 420 euros and their average monthly median partial old-age pension was 370 euros.
A majority of the partial old-age pensions begin before the recipients reach their age group’s statutory retirement age for a full old-age pension. At year-end 2020, every fifth recipient of a partial old-age pension received the pension after reaching their age group’s statutory retirement age, women slightly more often than men. The difference between receiving a 25- or a 50-per-cent pension is minor.
Years-of-service pension paid to 62 persons at year-end 2020
The years-of-service pension was introduced in connection with the 2017 pension reform. The pension can be granted to individuals who were born in 1955 or after, who have done work that requires great mental or physical effort for at least 38 years and whose ability to work has been reduced. The first years-of-service pensions were paid out in the spring of 2018.
Years-of-service pension 2018–2019
|– Average pension €/month||1,870||2,081||2,173|
|Pensioners at 31 Dec||5||15||62|
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