The majority (86 per cent) of Finns who have taken a partial old-age pension are satisfied with their choice and the timing of when they chose to start drawing it, research from the Finnish Centre for Pensions (ETK) has shown.

The research, a survey of 3,000 individuals who had taken a partial old-age pension between 2019 and 2024, aimed to find out the experiences of those who have taken out a partial old-age pension.

Over one in 10 (14 per cent) would have preferred to start their partial old-age pension earlier, later, or not to have taken it at all.

Meanwhile, around 70 per cent of respondents felt that taking out a partial old-age pension was financially worthwhile, and almost the same proportion of people said that uncertainty about their health or remaining life expectancy had influenced their decision.

Financial need, health reasons or uncertainty about the pension system were cited as reasons for applying for a partial old-age pension more frequently by those whose financial situation or health was poorer.

On the other hand, ETK economist, Satu Nivalainen, said that for those in a more advantageous position, such as the highly educated, the partial old-age pension was often seen as a more financially viable opportunity to take advantage of the system’s flexibility or to gain additional income for saving or investing.

According to the survey, uncertainty about the future as a reason for claiming a pension has increased significantly in recent years.

Nivalainen suggested that many people may opt for a partial old-age pension because they are unsure whether their health and ability to work will remain sufficient until they reach the full retirement age.

She added that concerns may have also been fuelled by “the public debate on pensions and the pressure to reform the system”.

Overall, the desire for additional income influenced most (80 per cent) of respondents' decision to claim partial old-age pension earlier.

The most common single reason was to have additional income to cover daily expenses, which influenced the decision of over 40 per cent of respondents. In addition, several respondents needed additional income due to various financial challenges.

Six in 10 (60 per cent) respondents took their partial old-age pension earlier as they wanted to reduce their working hours. However, the reasons for this varied, with the most common (45 per cent) being that they wanted to lighten their workload.

ETK also found that those who opted for a partial old-age pension generally understood its impact, with around 90 per cent having checked the amount of the partial old-age pension and were aware that it permanently reduces the full old-age pension.

When asked about how the reduction for early retirement in their pension felt, 13 per cent of respondents said it felt large, 36 per cent said it felt small, 43 per cent said it felt neither small nor large, and 8 per cent said they didn’t claim the partial old-age pension early.

The survey also revealed that around two-thirds of respondents were aware that the partial old-age pension can also be claimed after the minimum retirement age.

“Those in a weaker financial or health position are more likely than others to have made a decision about their pension based, at least in part, on incomplete information,” Nivalainen concluded.

ETK also reported clear differences in awareness of the partial old-age pension between different population groups.

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