Finnish people on a partial old-age pension tend to retire on a full-time old-age pension as soon as they reach their retirement age compared to those who do not draw a partial old-age pension, according to the Finnish Centre for Pensions (ETK).

The study also found that the same applies to those who draw the former part-time pension and that people on an early pension less often continue working until their target retirement age. This is despite hopes that early pensions help extend working lives by offering ways to combine work and retirement.

“The study finds large differences in the transition to old-age pension between those who have taken an early pension and those who have not. This is important information for the objective of extending working lives,” ETK senior researcher, Ilari Ilmakunnas, said.

In addition, the study found that the population groups that typically draw an early pension, a part-time pension and the partial old-age pension are opposites.
“More often than average, the recipients of the former part-time pension were women, public sector employees and university graduates. The recipients of the partial old-age pension, on the other hand, are more often men, private sector employees and have a primary or secondary education,” ETK economist, Satu Nivalainen, said.

According to the study, the partial old-age pension is more popular than the part-time pension.

“The partial old-age pension is a flexible pension. It can be drawn without any restrictions concerning, for example, working hours and earnings. The former part-time pension demanded that the individual transfer from full-time to part-time work,” Ilmakunnas said.

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