More Finnish people are working right up to becoming eligible for the old-age pension, according to the Finnish Centre for Pensions (ETK).

Its study found that retirement directly from work became more prevalent in all socio-economic groups in 2006–2017, but particularly so among the low-educated.

In 2017, nearly 60 per cent retired on an old-age pension from work. In 2006, the equivalent proportion was slightly under 40 per cent. Slightly less than half of the low-educated and blue-collar workers retired from work in 2017, while an ample decade earlier, nearly three out of four exited working life before reaching their retirement age.

According to ETK economist, Satu Nivalainen, unemployment just before retirement has nearly halved among the low-educated during the review period.

Nivalainen assesses that the trend is based on the abolishment of the unemployment pension agreed on in connection with the 2005 pension reform and the rising age limits of the unemployment tunnel.

“It is surprising that the changes made to the unemployment tunnel has so significantly increased working until retirement among the low-educated. At the same time, the socio-economic gaps in unemployment have levelled out since unemployment before retirement has not declined among the high-educated,” Nivalainen explained.

Share Story: