Average retirement age is rising in Finland
Written by Sunniva Kolostyak
The average retirement age in Finland is rising and people are taking out earnings-related pensions one month later in 2018 compared to 2017, according to the Finnish Centre for Pensions (ETK).
Statistics from ETK revealed that the average age of retirement closed in on 61.3 years in 2018, while the overall number of new retirees on an old-age pension was considerably down from the previous year due to new rules which raises the age limit.
The minimum retirement age for persons born in 1955 is 63 years 3 months. This drove down the number of persons retiring on an old-age pension in 2018 by more than 10 per cent.
The number of people retiring on a disability pension also increased by more than 1,000, or 7 per cent, but the average age at retirement continued to rise despite this. A quarter of the increase is attributable to those under 50, and half to people over 60 as they can be granted a disability pension on “less stringent criteria”.
Since 2000, the average age at retirement has risen by 2.5 years, and the goal is to get the average age to 62.4 by 2025, which requires an annual increase of over one-tenth in the average retirement age.
Commenting, ETK development manager Jari Kannisto said: “The higher age limit for old-age pension will considerably push up the age at retirement. But that alone is not enough to reach the target. We will also need to see a marked decrease in the number of persons retiring on a disability pension.
“A higher retirement age will mean there are those who can’t manage to retain their ability to work through to old-age retirement. In last year’s statistics this is reflected in an increased number of persons retiring on a disability pension at age 63.”
Last year, 69,000 people retired on an earnings-related pension, of whom 49,000, or 70 per cent, retired on an old-age pension. The number of people retiring on an old-age pension was down by 8,000 from 2017.