Growing number of working retirees

One in ten 63-67-year-old retirees works.  The number has grown slightly year-on-year. The majority of work done in retirement is irregular and part-time work. The working retirees have, on average, higher earnings-related pensions than others of the same age.

Nearly 40,000 of  63–67-year-old retirees were working at year-end 2017.  Half of them were men and half of them women.

The number grew year-on-year by a few thousand people. When including those who have postponed their retirement, nearly 70,000 persons aged between 63 and 67 years were working.

The number of persons working while drawing a pension has grown slowly in recent years. The growth has accelerated slightly thanks to a favourable economic growth.

“Now that the wheels of economy are spinning faster, employment rates go up and the demand for older workers and retired workers has risen on the labour market,” explains Jari Kannisto, Development Manager at the Finnish Centre for Pensions.

One third work all year round

Retirees who work get a higher earnings-related pension than others of the same age. On average, their monthly pension is around 1,860 euros (in 2017). The average monthly pension of other 63–67-year-olds is 1,630 euros. Working retirees got an average income from work of 1,200 euros for the months they worked.

Work done in retirement is often irregular and part-time work. One third of all retirees under 68 years worked throughout the year.

As a rule, retired men work in the transport business. Retired women, on the other hand, work in the caring, cleaning, teaching and sales industries.

“It would seem that, in Finland, retirees do not work primarily because their pensions are small. This is not to say that the extra income wouldn’t improve their standard of living. Yet, the majority of the working retirees are motivated to work because they want to retain their social networks and because they are interested in and want to work,” Kannisto estimates.

More information
Jari Kannisto, phone +358 29 411 2232, jari.kannisto(at)etk.fi

Photo: Gettyimages