Almost half (48 per cent) of the people that applied for a partial old-age pension at the end of 2022 in Finland did so to benefit from the “exceptional” index increase of 6.8 per cent at the beginning of 2023, according to a survey from Varma.

Varma stated that it granted almost 7,000 new partial old-age pensions in 2022, when the usual number is around 2,500 a year.

The pension company asked 5,000 of its partial old-age pension customers for their reasons of taking a partial old-age pension, and 51 per cent cited uncertainty about life expectancy.

Respondents also raised concerns about the public debate about ending the partial old-age pension.

Over a quarter (27 per cent) of respondents applied for a partial old-age pension to cover the increased cost of living.

Most of the respondents planned to transfer or had already transferred to the old-age pension at the lowest retirement age, with 12 per cent estimating that they would postpone retirement with the help of a partial old-age pension.

Almost half (49 per cent) are continuing to work full time, 16 per cent have moved to part-time work and 9 per cent have stopped working completely.

Fifteen per cent were not working when they applied for a pension.

“The effect of the index increase was also visible in the answers to our survey,” said Varma service manager, Elina Juth.

“Forty-eight per cent of those respondents whose partial old-age pension had started in 2022 said that the reason for taking it was the desire to increase their pension in order to benefit from the index increase.

“Among those who chose this answer option, it was taken especially by those born in 1959 who were close to retirement age

“The answers showed how people take responsibility themselves when their ability to work starts to falter.

“With the help of a partial old-age pension, the respondents had voluntarily reduced their work, for example moving away from night shifts or from full-time to part-time work.

“Many who continue to work full-time said that they will use unpaid leave in the future and use it to lighten their last years of work.”

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