Increasing employee and employer pension contributions was the second most popular means of consolidating pension funding, as 34 percent of respondents thought it was a good or fairly good idea and 35 percent considered it a bad or fairly bad idea. A little over a quarter (26%) of the respondents expressed their support and 37% doubted the higher risks of investing in pension funds.
“Surprisingly, Finns do not support the pursuit of higher profits by increasing the risk of investment activities with pension funds, even though it could be a way to reduce the upward pressure on pension payments.” analyzed Allan PaldaniusDirector of ETK.
The least popular course of action was cutting the pensions of current or future retirees. Cutting the pensions of current pensioners was considered a bad or relatively bad idea by 84 percent, and cutting the pensions of future pensioners was considered a bad or relatively bad idea by 83 percent.
According to ETK, public trust in the pension system has remained high despite demographic concerns.
About 70 percent of the respondents stated that they trust the system and approximately the same number that they trust the reliable management of the pension funds. However, more than half (54%) of the respondents considered that younger age groups have to bear a disproportionately large burden of pension payments.
The research also aimed to measure the public’s understanding of the system’s most important features.
The majority of respondents were aware that people have the right to a national pension or guaranteed pension if their work pension is small (84%), that the age limit for the national pension is not the same for everyone (68%) and that most of the work pension pension payments are used to pay current pensions (60%) .
There was some uncertainty about how postponing retirement would affect pensions. While 52 percent of the respondents knew that postponing retirement will lead to a permanent increase in the pension, 34 percent thought the statement was incorrect.
“It would be desirable for as many people as possible to know that postponing retirement increases the earnings-related pension. Everyone could therefore make decisions about retirement based on the right information,” said Sanna TenhunenEconomist at ETK.
In May 2022, more than 1,000 people aged 18–79 were interviewed for the survey.
Aleksi Teivainen – HT
Source: The Nordic Page