The increase in the retirement age in Finland has “had the desired effect”, with people typically working for longer and retiring later, according to the Finnish Centre for Pensions (ETK).

Among 63-64 year olds, the employment rate has risen “considerably”, with Finns retiring later and in line with the increases in the minimum retirement age for an old-age pension.

Prior to the increase, the most common age people retired in Finland was 63.

Since then, it has risen gradually in three-month increments, in line with the minimum retirement age.

For those born in 1960, the average retirement age was around 64 years and six months.

The employment rate among 63 year olds has increased my nearly 30 percentage points since 2016, hitting over 60 per cent in 2025.

Over the same period, the employment rate among 64 year olds has almost doubled.

“Raising the minimum retirement age for the old-age pension has led people to continue working,” said ETK development manager, Jari Kannisto.

ETK found that higher earners typically continued working beyond the minimum retirement age.

Among those born in 1960, the median monthly earnings were €4,180 for those who continued working without drawing their pension.

The median monthly earnings were €3,390 for those who retired as soon as they reached their retirement age.

“The higher people’s monthly earnings, the more likely they are to continue working beyond their retirement age,” said Kannisto.

“And vice versa: those with lower earnings are more likely to start drawing their pension as soon as they reach their retirement age

“The prospect of additional income alone does not make Finns working beyond their retirement age. Other crucial factors include their health, ability to work and willingness to keep working, providing that working conditions support this.”

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