Pension Barometer: Employment-based immigration most popular option to strengthen pension financing – no cuts in pensions wanted
More than 60 per cent of Finns find employment-based immigration to be a good means to strengthen pension financing if so required. According to the fresh Pension Barometer, the second most popular alternative is to raise pension contributions. Most respondents object to cutting current or future pensions.
Around 30 per cent of the respondents assessed that raising the pension contributions of the working-age population and employers is a good or fairy good option to strengthen pension financing. This is evident from this year’s Pension Barometer of the Finnish Centre for Pensions.
Increasing risk-taking in pension investment operations to raise pension assets was the third most popular option. Of the respondents, around 30 per cent thought that was a good or a fairly good option, but nearly as many assessed it to be at least a fairly bad option.
Cutting pensions was viewed negatively. About 80 per cent of the respondents felt that cutting current and future pensions is at least a fairly bad option.
“Had there been only one option to strengthen pension financing, slightly more Finns would have selected increasing employment-based immigration compared to the 2023 Pension Barometer”, explains Economist Sanna Tenhunen of the Finnish Centre for Pensions.
Increment for late retirement better known than before
The Pension Barometer poll explored basic knowledge of pensions with several statements. The respondents were best familiar with the statement about minimun pension security: more than 80 per cent of them knew that if a person has a small or no earnings-related pension, they receive a national or guarantee pension. More than 60 per cent of the respondents knew that the retirement age is not the same for everyone.
60 per cent knew that the main part of the pension contributions paid now is used to finance current pensions in payment. Nearly 30 per cent of the respondents believed that this is not true. A higher number of respondents were aware of the effect of the increment for late retirement in 2024 compared to in 2023. Nearly 60 per cent said that they know that deferring retirement with an old-age pension permanently increases the pension. The equivalent share of respondents a year ago was 50 per cent.
“People are reasonably familiar with pensions. We hope that as many as possible know the basics about pensions. That would allow them to make informed decisions both in their working life and at retirement based,” Head of Research Susan Kuivalainen at the Finnish Centre for Pensions points out.
Trust in pension system still strong
Around 70 per cent of Finns trust the Finnish pension system. More than 60 per cent find that pension assets are managed reliably. Trust in the pension system and in managing pension assets remained at the same level as in the 2023 Pension Barometer.
Around 50 per cent of the respondents (that is, slightly more than in 2023) estimated that the pension provides a reasonable income for current pensioners. Roughly as many thought that there will be enough money to pay out pensions also in the future.
The survey was conducted in March 2024. The respondents numbered roughly 1,000 Finnish adult citizens.
