Miestyöntekijä varastossa.

Retirees continue to work in retirement despite rising retirement age

One in ten 63–67-year-old retiree works. Most of the time, the work is sporadic and part-time. The number of working retirees has remained unchanged despite the increase in retirement age.

At year-end 2018, around 36,000 retirees between the ages of 63–67 were working. Half of them were men, half women.  When counting those who worked without drawing a pension, the total number of working 63–67-year olds was 74,000.

In recent years, the number of working retirees has grown slowly. In 2018, the number was on the same level as in 2017. At the same time, the number of persons aged 63 or over who were working has increased since the retirement age rose for those born in 1955 to 63 years and 3 months.

“The rising retirement age affects the number of new retirees and also the number of working retirees. In 2018, the number of retirees on an old-age pension who were working dropped by about 8,000 persons compared to in 2017”, says development manager Jari Kannisto of the Finnish Centre for Pensions.

The number of wokring 63-67-year-old retirees has doubled from 2007 to 2018. At the end of 2018, a total of 36,000 retirees of this age were working. This counts for 9.5 per cent of the age group.

Sporadic and part-time work

Retirees who work receive a higher earnings-related pension: around 1,870 euros per month on average. The earnings-related pension of other 63–67-year-olds was 1,670 euros on average. The average monthly earnings of the working retirees was 1,200 euros.

The work done by retirees on an old-age pension is often sporadic and part-time. One third of all retirees below the age of 68 worked throughout the year.

“The combined average monthly earnings and pension of the retirees working was slightly above 3,000 euros: nearly 4,000 euros for men and an ample 2,500 euros for women,” Kannisto explains.

Retired men most often work in the transportation industry while retired women work in the nursing, cleaning, teaching and sales industries.

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