Finland’s retirement age is declining

Finland's retirement age is declining

He will retire in Finland later than in previous years. Figures from the Finnish Center for Pensions show that last year people left the labor force and retired on average six months later than their retiring colleagues in 2020.

The average retirement age in 2021 was 62.4 years. This change is largely explained by the significant decline in the number of new retirees on disability and the pension system reforms implemented in 2017.

In 2021, there were 61,500 new retirees. About 44,000 of them retired.

The number of new people on disability pension fell by more than eight per cent from the previous year and was the lowest on record. Development Center of the Pension Center Jari Kannisto believes, however, that this figure may rise again.

"The health of Finns has not improved much during the coronavirus. On the contrary, untreated health problems are likely to increase if medical help has not been sought because of these exceptional circumstances. It is quite likely that the number of people with disabilities will increase after a pandemic," says Kannisto.

Higher employment rates for older workers

The employment rate for older workers aged 60-64 was almost 57 per cent in 2021. According to the Finnish Center for Pensions, the employment rate for the whole age group has risen sharply over the last two decades.

"The careers have clearly lengthened. The employment rate of older people aged 60-64 has risen by almost ten percentage points since the pension reform. Last year, it was the highest in statistical history," notes Kannisto.

At the end of 2020, there were almost 1.5 million people on retirement. There were 130,000 people on disability pension.

One in three of those who retired from an occupational pension scheme in 2020 did so because of a mental or behavioral disorder. The second largest group, almost the same size, consisted of those with musculoskeletal disorders. Mental health problems were more pronounced in younger age groups.

Source: The Nordic Page




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