Increases in the Finnish retirement age have increased employment for employees and entrepreneurs far more than for white-collar workers, analysis from the Finnish Centre for Pensions (ETK) has revealed.

Before the 2017 reforms, the lowest retirement age for those born in 1954 was 63, with those born in 1955 the first age group affected by the increase in the retirement age.

The analysis showed that the impact of the increase on those born between 1954 and 1957 varied by employment type, with particular differences highlighted for entrepreneurs, for whom the employment effect has been the greatest.

Indeed, ETK found that, among entrepreneurs, the proportion of employed people increased by up to 2.3 times from 25 per cent to almost 60 per cent between the old retirement age before the reform and the new, higher retirement age.

The proportion of people employed in white-collar occupations has doubled from around 20 per cent to almost 40 per cent between the old and new retirement ages.

Furthermore, for senior white-collar workers, employment increased from 47 per cent to 62 per cent in the same age range.

Given this, ETK said that, in practice, with the increase in the retirement age, employment has increased almost as much as is realistically possible, noting that the share of those who continued working until retirement age has remained almost unchanged.

The increase in the retirement age has also been reflected in the proportion of those who are unemployed, on disability pension, sick or otherwise out of the labour force.

In particular, ETK found that, among employees, the proportion of those outside work has clearly increased between the old and new retirement ages, with above average increases in unemployment and disability especially.

It found that a slightly higher than average number of entrepreneurs are on disability pensions, and a clearly larger proportion are otherwise out of the labour force as a result of the increase in the retirement age.

However, among senior employees, the proportion of people outside the working life has increased less than others.

The ETK also found that, although employees and entrepreneurs are less likely to continue working until at least 64 years of age than senior white-collar workers, continuing to work until this age has become more common in all socio-economic groups.

However, the ETK suggested that the effect of the increase in the retirement age on employment growth will probably level off, as those leaving work before the new, higher retirement age will increase, at least to some extent, when the retirement age rises enough.

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