Press releases

The average monthly pension of Finns grew by nearly 50 euros in 2020. In real terms, it has risen by an ample 200 euros in one decade. Yet every third pension is less than 1,250 euros per month.

The number of new partial old-age pensions grew only slightly in 2020. At the end of the year, a total of 29,000 persons were drawing a partial old-age pension. Statistics of the Finnish Centre for Pensions shows that one third of them have reduced working.

Director of Research Venla Berg (Population Research Institution) and Lead Specialist Timo Aro (Consultancy for Regional Development MDI) both stress that improving the birth rate in Finland requires changes in working life and more child- and family-friendly public policies.

In 2020, Finns retired on an earnings-related pension five months later than in 2019, at 61.9 years on average. A total of 42,000 persons retired on an old-age pension, which is slightly fewer than in 2019. Continued working raised the employment rate among the elderly to a record-high level.

The development of mortality greatly impacts the end results of pension projections. According to Eurostat’s population projection, the gaps in EU countries’ expected longevity will narrow. Eurostat projects that life expectancy in Finland will grow at a slower pace than projected by Statistics Finland. This would slow down the rise of the retirement age and improve pension benefits compared to national projections.

Most young people in Finland are in gainful employment at some point between ages 18 and 22. At the same time, they are building the beginnings of their future pension. One in ten young people in this age group have accrued a pension of almost 120 euros, according to a new study out by the Finnish Centre for Pensions.

A new online calculator is now available to help users estimate the amount of partial old-age pension payable to them and to gauge its effects on their old-age pension in due course. This is a useful pension planning tool that allows users to see how the choices they make impact on their pension security.

Finns are worried about the retirement income of low-income retirees in particular. Retirees’ income gaps and the availability of reasonably-priced social and health services also cause concern. A recent study by the Finnish Centre for Pensions reveals that women are more worried about pension issues than men.

Employees’ insured earnings in Finland vary significantly by age and gender. Earnings are lowest among women who have recently joined the labour market and highest among men aged 40. It seems that family formation affects the development of women’s earnings in particular.

Working for one additional year past one’s retirement age raises one’s net income for life with nearly 10 per cent on average. Women benefit more than men from deferring retirement since, on average, they live longer than men.