The number of Finnish young adults saving for retirement has increased, with nearly half (48 per cent) reporting in 2024 that they had saved for retirement, up from 32 per cent in 2014, according to research by the Finnish Centre for Pensions (ETK).

The study revealed not only an increase in the number of young adults saving for retirement, but also a rise in the proportion of people saving for retirement across all age groups between 2014 and 2024.

For example, in 2014, 46 per cent of 35–44-year-olds saved for retirement compared to 50 per cent in 2024. The increase was also seen for 45–59-year-olds (41 per cent in 2014 to 57 per cent in 2024) and 60-67-year-olds (44 per cent in 2014 to 59 per cent in 2024).

Despite the increasing number of Finns saving for retirement, the study highlighted scepticism in young adults (aged 25–34) about the adequacy of pensions in the future.

Young adults who have saved for retirement are more critical of the future of the pension system than older age groups and are more likely than others to doubt whether pensions will be paid in the future and whether they will guarantee a reasonable standard of living.

This group are also more sceptical about the certainty of pension payments than their peers who have not saved for retirement.

“Nearly three in four young adults who saved for retirement were at least partly doubtful about whether pensions can be paid also in the future”, ETK economist, Kati Ahonen, explained.

In addition to this, ETK found that young adults are more likely than older age groups to believe that their own savings will play a significant role in their retirement income, with many anticipating using their savings to fund everyday expenses in retirement.

According to the study, half of 25–34-year-olds plan to use their savings to retire early, a larger proportion than among other age groups.

These figures highlight concerns about changes in Finland’s age structure, with those who have saved for retirement being somewhat more worried about low birth rates than those who have not saved.

In addition to this, economic and employment conditions are also a source of concern among young people; however, this survey shows there is no difference on this issue between young adults who have saved for retirement and those who have not.

ETK senior researcher, Jyri Liukko, noted that concern about the economic and employment situation does not necessarily translate into pension savings.

Instead, he said that some of those who have not saved are very worried about their own financial situation and, consequently, the adequacy of their future pension security, but noted that they simply do not have the opportunity to save.

According to Ahonen, the growing popularity of pension saving among young adults could be partly credited to a lack of trust in the pension system, but several other factors are also likely to influence willingness to save.

“General societal uncertainty has increased, and saving has become more common across all age groups,” she said.

ETK also suggested that the trend of saving among young adults could be linked to the trend of investing, which has made saving part of the everyday life of young adults.

“For example, there is abundant social media content that focuses on saving and investing. These channels successfully reach young adults. It is understandable that part of the phenomenon of saving can be channelled into saving for retirement,” Ahonen concludes. 

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