The effective Finnish retirement age increased by five months in 2020 to 61.9 years, according to the Finnish Centre for Pensions (ETK).

The effective retirement age, which is the average age of exit from the labour market, has been increasing since the 2017 pension reform was introduced, aimed at raising the effective retirement age and reducing the number of new retirees on an old-age pension.

In 2020, a total of 42,000 persons retired on an old-age pension, which is slightly fewer than in 2019. In addition, continued work raised the employment rate among the elderly to a record-high level.

During the year, the youngest people eligible for an old-age pension were those born in early 1957. Their retirement age (63 years and 9 months) is three months higher than that of the previous age cohort.

ETK also said that a change in pension claim volumes was evident, particularly after the coronavirus summer, with claims dropping steeply between August and the end of 2020.

“Perhaps the prospect of more leisure time is less attractive in these exceptional times when having hobbies and travelling is not possible,” ETK development manager, Jari Kannisto, said.

The average effective retirement age in Finland has risen by three years since the beginning of the century. The aim is to reach an average effective retirement age of 62.4 years by 2025.

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