Pirkko Hamalainen and Heikki Hamalainen, a retired couple
According to the calculations made by Ilmarinen, the number of applications for an old-age pension will increase nearly by 40 per cent from last year.
”In our view, the economic decline and the related uncertainty are leading to a situation in which people are more likely to apply for an old-age pension than when times are good”, Aro believes.
Director Jyrki Rasi, from the pension services at Varma, says that the number of old-age pension applications submitted to Varma has gone up this year already by more than 30 per cent compared with the corresponding period last year.
Most applications are attributable to the large baby-boomer age group, but the current recession is also to blame.
”The growth in the unemployment rate can also be seen to be reflected in the figures”, Rasi adds.
Since 2005, it has been possible to take old-age retirement between the ages of 63 and 68 in the private sector.
However, the over-63-year-olds are encouraged to continue to work by granting a so-called ”super accumulation” of pension. This means that after the age of 63 the pension will accrue at a higher rate of 4.5 per cent of the earnings.
However, the prospect of securing a higher pension does not appear to be enticing people to stay in work longer.
The records of the Finnish Centre for Pensions for last year show that most people retired as soon as it was possible - at the age of 63.
The atmosphere at workplaces may also have an impact on the early retirement.
”At some workplaces, there may be a certain pressure for the older employees aged 63 to give up their jobs to make way for the younger generation”, Rasi estimates.
The goal of the government and the labour market organisations is to keep people at work an average of three years longer than today. In other words, the average retirement age should be raised by three years from the current 59.4 years by 2025.
During the upswing, the situation looked good already. The employment rate of ageing employees improved, while the retirement age moved upward to some extent.
Today it looks as if the average retirement age could turn downwards again, as some people are being forced to enter the unemployment pathway to retirement already below the age of 60.
The tasks of the working groups set up to investigate the raising of the minimum age for old-age pensions are bound to become more difficult.
The dispute over the government’s decision on raising the minimum age for old-age pensions has been transferred to a working group led by Jukka Rantala, the Managing Director of the Finnish Centre for Pensions.
Another similar working group discussing possibilities to raise the minimum age for old-age pensions is being led by director Jukka Ahtela of the Confederation of Finnish Industry (EK).
Prime Minister Matti Vanhanen proposed last winter that the minimum age for an old-age pension should be raised in stages to 65 years from the present 63. The labour market organisations roundly rejected the idea, and the PM had to withdraw his proposal. [rc]
Copyright: Helsingin Sanomat
September 19, 2009
FINLAND: Number of old-age pension applicants to increase dramatically this year
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HELSINKI, Finland / Helsingin Sanomat / Business & Finance / September 19, 2009
Large age-groups applying for pensions at accelerated rate in recessionary times
According to the largest private-sector employee pension insurers Varma and Ilmarinen, the number of applications for an old-age pension is estimated to grow by as much as 30 to 40 per cent in the course of the current year.
”Half of the growth can be explained by the fact that the baby-boomer generation will be leaving the workforce, while the other half is attributable to the financial situation”, estimates Senior Vice President Timo Aro at Ilmarinen.
Pirkko Hamalainen and Heikki Hamalainen, a retired couple
According to the calculations made by Ilmarinen, the number of applications for an old-age pension will increase nearly by 40 per cent from last year.
”In our view, the economic decline and the related uncertainty are leading to a situation in which people are more likely to apply for an old-age pension than when times are good”, Aro believes.
Director Jyrki Rasi, from the pension services at Varma, says that the number of old-age pension applications submitted to Varma has gone up this year already by more than 30 per cent compared with the corresponding period last year.
Most applications are attributable to the large baby-boomer age group, but the current recession is also to blame.
”The growth in the unemployment rate can also be seen to be reflected in the figures”, Rasi adds.
Since 2005, it has been possible to take old-age retirement between the ages of 63 and 68 in the private sector.
However, the over-63-year-olds are encouraged to continue to work by granting a so-called ”super accumulation” of pension. This means that after the age of 63 the pension will accrue at a higher rate of 4.5 per cent of the earnings.
However, the prospect of securing a higher pension does not appear to be enticing people to stay in work longer.
The records of the Finnish Centre for Pensions for last year show that most people retired as soon as it was possible - at the age of 63.
The atmosphere at workplaces may also have an impact on the early retirement.
”At some workplaces, there may be a certain pressure for the older employees aged 63 to give up their jobs to make way for the younger generation”, Rasi estimates.
The goal of the government and the labour market organisations is to keep people at work an average of three years longer than today. In other words, the average retirement age should be raised by three years from the current 59.4 years by 2025.
During the upswing, the situation looked good already. The employment rate of ageing employees improved, while the retirement age moved upward to some extent.
Today it looks as if the average retirement age could turn downwards again, as some people are being forced to enter the unemployment pathway to retirement already below the age of 60.
The tasks of the working groups set up to investigate the raising of the minimum age for old-age pensions are bound to become more difficult.
The dispute over the government’s decision on raising the minimum age for old-age pensions has been transferred to a working group led by Jukka Rantala, the Managing Director of the Finnish Centre for Pensions.
Another similar working group discussing possibilities to raise the minimum age for old-age pensions is being led by director Jukka Ahtela of the Confederation of Finnish Industry (EK).
Prime Minister Matti Vanhanen proposed last winter that the minimum age for an old-age pension should be raised in stages to 65 years from the present 63. The labour market organisations roundly rejected the idea, and the PM had to withdraw his proposal. [rc]
Copyright: Helsingin Sanomat
Pirkko Hamalainen and Heikki Hamalainen, a retired couple
According to the calculations made by Ilmarinen, the number of applications for an old-age pension will increase nearly by 40 per cent from last year.
”In our view, the economic decline and the related uncertainty are leading to a situation in which people are more likely to apply for an old-age pension than when times are good”, Aro believes.
Director Jyrki Rasi, from the pension services at Varma, says that the number of old-age pension applications submitted to Varma has gone up this year already by more than 30 per cent compared with the corresponding period last year.
Most applications are attributable to the large baby-boomer age group, but the current recession is also to blame.
”The growth in the unemployment rate can also be seen to be reflected in the figures”, Rasi adds.
Since 2005, it has been possible to take old-age retirement between the ages of 63 and 68 in the private sector.
However, the over-63-year-olds are encouraged to continue to work by granting a so-called ”super accumulation” of pension. This means that after the age of 63 the pension will accrue at a higher rate of 4.5 per cent of the earnings.
However, the prospect of securing a higher pension does not appear to be enticing people to stay in work longer.
The records of the Finnish Centre for Pensions for last year show that most people retired as soon as it was possible - at the age of 63.
The atmosphere at workplaces may also have an impact on the early retirement.
”At some workplaces, there may be a certain pressure for the older employees aged 63 to give up their jobs to make way for the younger generation”, Rasi estimates.
The goal of the government and the labour market organisations is to keep people at work an average of three years longer than today. In other words, the average retirement age should be raised by three years from the current 59.4 years by 2025.
During the upswing, the situation looked good already. The employment rate of ageing employees improved, while the retirement age moved upward to some extent.
Today it looks as if the average retirement age could turn downwards again, as some people are being forced to enter the unemployment pathway to retirement already below the age of 60.
The tasks of the working groups set up to investigate the raising of the minimum age for old-age pensions are bound to become more difficult.
The dispute over the government’s decision on raising the minimum age for old-age pensions has been transferred to a working group led by Jukka Rantala, the Managing Director of the Finnish Centre for Pensions.
Another similar working group discussing possibilities to raise the minimum age for old-age pensions is being led by director Jukka Ahtela of the Confederation of Finnish Industry (EK).
Prime Minister Matti Vanhanen proposed last winter that the minimum age for an old-age pension should be raised in stages to 65 years from the present 63. The labour market organisations roundly rejected the idea, and the PM had to withdraw his proposal. [rc]
Copyright: Helsingin Sanomat
