ETK Pension Research Forum debuts with new evidence on pension reforms
The Finnish Centre for Pensions (ETK) hosted its first Pension Research Forum in March 2025, marking a milestone in our ongoing efforts to promote international collaboration in pension research.
With the launch of the Forum, we aim to highlight issues that are crucial for pension policymaking and for assessing the financial and social sustainability of pension systems. We also seek to foster dialogue between researchers and policymakers, ensuring that research addresses real-world challenges. By sharing insights and best practices, we can better navigate the complexities of pension reforms and ensure sustainable pension provision for future generations.
The first Forum successfully reached a broad audience, attracting 150participants from research institutions, policymaking bodies, and stakeholder organizations from around the world. The high turnout and active participation underline the importance of such platforms in bridging the gap between research and policy-making.
Research is important at different stages of pension reforms
As Mikko Kautto, the Managing Director of the ETK, pointed out in his introductory remarks, research can play an important role at different stages of pension reforms. It serves to raise awareness of issues that initiate need for reform and to set the agenda. The impact of implemented reforms can be assessed through research, and the evaluation of the overall results of a reform based on research findings provides a starting point for planning the next reforms. These functions are essential for informed decision-making and for ensuring that pension reforms are both effective and equitable.
The first ETK Pension Research Forum brought together international researchers to present and discuss recent studies on issues related to pension reforms. A total of four studies were presented. Two of them focused on the impact of pension reforms that have already been implemented, examining how these changes have affected employment and retirement decisions. The other two presentations highlighted issues that may need attention in future reforms.
Key insights from the first Forum
Øystein Hernæs presented evidence from Sweden, showing that raising the early pension claiming age from 61 to 62 led to an increase in employment until the age of 62, and to some extent, beyond. Concurrently, there was some degree of benefit substitution. The increase in employment was mainly driven by low-income earners and those likely to retire early.
Ozan Yanar discussed the introduction of the Finnish minimum guarantee pension, which effectively raised the old-age pension level for those with the lowest pensions. This reform led to an increase in retirement rates among eligible individuals, but the effect was mainly driven by those who were not employed at the time of pension take-up.
Tuulia Hakola-Uusitalo, acting as a commentator to the first two presentations, discussed the balance between the generosity of the pension system both in terms of eligibility age and pension level and the incentives to work. She emphasized the need for more empirical research on this issue.
Thorsten Heien presented evidence from Germany showing that a higher number of self-employed individuals without a mandatory pension insurance increases the risk of poverty in old age. One possible solution would be to introduce a compulsory pension scheme for the self-employed, preferably a universal scheme that treats all workers equally.
Camilla Marabini’s presentation showed that about one in four respondents to a Dutch survey indicated that their decision to retire was at least partly involuntary. The most commonly cited factors influencing retirement were the mandatory retirement age and organizational pressures. The findings suggest that institutional and organizational structures may have negative impact on late-career employment, and argue for policies to counteract involuntary retirement.
Following up on the last two presentations, Traute Meyer discussed the role of voluntarism in pension systems. In Germany, voluntarism aims to encourage entrepreneurialism but results in a higher risk of poverty among low-income earners. Conversely, in the Netherlands, the lack of voluntarism reduces pension contributions and decreases satisfaction, especially among highly educated workers.
A platform for ongoing dialogue
The Forum will continue to serve as a platform for fostering a collaborative environment that promotes innovation and informed decision-making in the field of pensions. The next call for papers will open in autumn 2025. We are excited about the future of the ETK Pension Research Forum and the potential it holds for advancing pension research.
Presentations:
- Øystein Hernæs (The Ragnar Frisch Centre for Economic Research): Labor Market Effects of an Increase in the Early Eligibility Age in a Flexible Pension System – Evidence from Sweden (with Johannes Hagen,Alireza Khoshghadam and Stefanie König)
- Ozan Yanar (University of Helsinki): Securing the Future: The Impact of the Finnish Guarantee Pension on Labor Supply (with Petri Böckerman and Ohto Kanninen)
- Thorsten Heien (DRV Bund): Increasing numbers of self-employed, increasing risk of poverty in old age? (with Ulrich Brandt and Christin Czaplicki)
- Camilla Marabini (Netherlands Interdisciplinary Demographic Institute): Involuntary Retirement Pathways: A Multilevel study on Health, Organizational Pressures, and Institutional Policies (with Kène Henkens and Hanna van Solinge)
- Comments by Tuulia Hakola-Uusitalo (VATT Institute for Economic Research) and Traute Meyer (University of Southampton)
Read more on Etk.fi:
- Navigating Pension Reforms – Insights from Recent Research
- ETK Pension Research Forum on 17 March 2025 – Open call for presentations
