Finns see 62 as good retirement age

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According to a recent survey, 62 is the average age at which Finns would like to retire.
      The study, commissioned by the Finnish Pension Alliance (TELA), indicates that the average desired retirement age has risen by one year compared with the previous such survey, conducted in 2001. In the 1998 survey the average ideal retirement age was 60.
      The survey, conducted by TNS Gallup, involved interviews with 1,046 people.
      TELA CEO Esa Swanljung was pleased with the rising trend, saying that the present attitudes are better in line with the pension reforms that take effect next year.
     
From the beginning of 2005 Finns will be entitled to a flexible transition to old age pension between the ages of 63 and 68.
      The aim of the reform is to persuade Finns to stay at work longer in a situation in which the average age of the population is increasing, as the members of the postwar baby boom generation approach retirement age.
      Today the average age of retirement for Finns is 59.
     
Swanljung said that adding one year to the average working years of the population would increase the number of working people by 60,000, bring down pressures for financing work pensions by between 1 and 1.5 percentage points, and would benefit the economy in a broader sense.
      However, the survey does not necessarily give a completely accurate picture of the real desires of Finns to continue at work for a long time.
      For instance, the introduction to the question on the ideal retirement age noted that the pension reform sets the basic retirement age at 63. Nevertheless, Finns, who were characterised in the study as "stubborn", felt that 62 would be a more suitable age.
      The respondents were asked if they would want to retire, or stay at work longer if they were 63 years old now. In their responses, 40% said that they would continue to work.
      However, this average was affected by the eagerness to work of younger age groups. Of those aged 15 to 24, 60% said that they would want to work beyond age 63.
     
The respondents overwhelmingly rejected the idea of a general increase in the retirement age.
      Asked if they agreed or disagreed with the statement "the average retirement age should be raised by a few years to make it easier to finance work pension costs", a full 63% disagreed.
      Opposition was greatest among respondents of working age. Those who are already on pension were less resistant toward the idea of raising the retirement age.
      Citizens were generally pleased with Finland’s current work pension system, with 60% saying that it treats people fairly.
      However, about half feel that maintaining the present level of pensions in the future will not be possible.
      Half of respondents believe that their pension benefits will weaken, just over one third expect no change, and only 11% expect them to improve.


Links:
  The Finnish Pension Alliance TELA web sites

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