Average Retirement Age Remains at 60.9 Years

According to statistics published by the Finnish Centre for Pensions, the expected effective retirement age remained on the same level in 2013 as in 2012. On average, the Finns retired on an earnings-related pension at age 60.9.

The total number of new retirees grew in 2013 compared to 2012 and that of new retirees on old-age pension by nearly 10 percentage points.

“Although the number of new retirees clearly grew, the differences within and in relation to the size of the age groups were minor. Therefore, the average effective retirement age remained unchanged,” explains Mikko Kautto, Director at the Finnish Centre for Pensions.

In 2013, the expected effective retirement age for 25-year-olds was 60.9 years and for 50-year-olds 62.6 years.

The expectancy published by the Finnish Centre for Pensions is based on data received from the pension providers. Changes in the effective retirement age are monitored with a statistical expectancy figure. The figure indicates at which age people retire if the number of new pensions relative to the number of equivalent-aged individuals insured for earnings-related pension remains at the level of the statistical (2013) year.

An ample 73,000 persons retired on an earnings-related pension

In 2013, an ample 73,300 persons retired on an earnings-related pension, an increase of more than 4,000 individuals year-on-year.

“The majority of individuals retiring on an earnings-related pension, i.e. more than 70 per cent, retired directly on an old-age pension. Last year, for the first time, they numbered more than 50,000”, says Jari Kannisto, Development Manager.

The number of new retirees on a partial pension grew, while that of new retirees on a disability pension remained unchanged compared to 2012. Last year, 20,000 individuals exited working life due to disability.

Old-age pension under the earnings-related pension acts may be drawn flexibly between the ages of 63 and 68. Approximately 1.3 million individuals are drawing earnings-related pension in their own right in Finland.

“Based on the figures for 2013, the average expected working life in Finland is nearly 34 years. The poorly improved employment rates reduced the expected working life by a few months compared to 2012,” Kautto adds.

Further statistical data on new retirees are posted on our website in the section Effective Retirement Age.

Further information

Mikko Kautto, Director, tel. +358 29 411 2185, +358 40 740 8095, first-name.lastname(at)etk.fi

Jari Kannisto, Development Manager, tel. +358 29 411 2185, +358 40 740 8095, firstname.lastname(at)etk.fi

 

Expected effective retirement age, all new retirees on an earnings-related pension