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Friday 21 September 2018

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Finnish immigrants face ‘low’ retirement income

Written by Natalie Tuck
17/10/16

Immigrants working and living in Finland face a lower retirement income than Finnish nationals, according to the Finnish Centre for Pensions.

The study focused on the working lives until 2013 of people who immigrated to Finland in 1995-1996, 2000-2001 and 2005-2006, with a total of 58,000 immigrants.

It primarily looked at immigrants in the labour market and found that immigrants are employed for about 40 per cent of the time they spend in the country. The time in employment differs clearly based on gender, age, year of immigration and country of origin, according to a study conducted by the Pellervo Economic Research Institute.

The study, which is based on register data of the Finnish Centre for Pensions and Statistics Finland, provides, for the first time, an overall picture of the working lives of immigrants who arrived in Finland in the 1990s and the 2000s.

In terms of pensions, it found that the working lives and earnings of immigrants are shorter and smaller than those of the majority population. As a result, immigrants will accrue only a small earnings-related pension. Older immigrants and female immigrants, in particular, run a greater risk of having to rely on basic security in retirement.

For example, after eight years in the country, the median annual income for female immigrants was less than €11,000. For male immigrants, it was nearly €19,000.

Pellervo Economic Research Institute research director Signe Jauhiainen said: “We should improve the employment opportunities for female immigrants. Otherwise their employment rates will remain weak and their income in retirement low.”



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