The number of Finnish private pensioners under 75 who feel their pension is insufficient has increased from 44 per cent a year ago to 52 per cent, a survey from Finnish earnings-related pension provider Ilmarinen has revealed.

The survey, which investigated issues related to retirement finances and preparedness, also found that a third (33 per cent) of pensioners felt their pension is adequate right now, compared to 35 per cent who said the same a year ago.

The share of pensioners who view their pension as adequate varied between 27 and 40 per cent in 2014, 2019, and 2021–2024.

The research also showed that after necessary expenses, respondents receive approximately €500 per month from their pension.

Commenting on the research, Ilmarinen researcher, Jouni Vatanen, said: "More and more people feel that their pensions are inadequate, and more than half of pensioners say they have had to cut back on their expenses.

“This is due to the situation of the Finnish economy, such as austerity measures and employment development, as well as the general atmosphere.

“Even though Finland's pension system is the seventh best in the world by international comparison, it would be important to encourage everyone of working age to prepare for their retirement at an early stage.

“At the same time, we should find ways to get as many pensioners as possible who want to work and are able to work part-time.”

The research found that 53 per cent of respondents were not surprised by the changes in their standard of living brought about by their new phase of life after retirement. Meanwhile, 84 per cent actively monitor the development of their financial situation.

In addition to this, the research revealed that 80 per cent of pensioners follow economic cycles and 70 per cent think there is also enough financial information available that is useful in everyday life.

Meanwhile, less than 10 per cent of pensioners follow general economic developments and do not feel that useful economic information is available.

When asked about their attitude towards investing, 38 per cent said they found it complicated, 32 per cent said it was not complicated and 28 per cent were uncertain.

According to their own estimate, 50 per cent of respondents can compare different savings and investment targets.

In terms of terminology, 87 per cent said they were familiar with the concept of inflation, while 78 per cent said they were familiar with the concept of compound interest.

Vatanen said that pensioners' financial skills are mainly at a “good” level, but more than a third find investing too complicated.

He noted that investment issues were emphasised in open-ended answers, with many wishing for “clear and reliable” information on investing.

“Increasing investment awareness is not only important for pensioners, but financial literacy should be strengthened at a much earlier stage. In this way, more and more people would hopefully be prepared for their retirement when they retire. This would support long-term economic well-being,” he added.

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