Goals to extend working life concretized in 2017 pension reform in Finland
In September 2014, the Finnish central labour market organisations and the State agreed on an extensive pension reform that came into effect as of the beginning of 2017.
Effects of the reform
- The grounds on which pensions are determined at different ages have been standardised.
- The age at which pension begins to accrue has been lowered to 17.
- The retirement age will rise by 3 months annually to 65 years by 2027.
- The retirement age will be linked to life expectancy after 2027.
- The pension insurance contribution will stabilise far into the future.
Two new pension types
In connection with the 2017 pension reform, two new pension types were introduced:
- the years-of-service pension
- for people who have done work that requires great mental or physical effort for at least 38 years,
- can be applied for as of age 63
- the partial old-age pension
- actuarially neutral
- replaces the part-time pension
- can be applied for as of age 61.