The ageing of the population challenges the financing of pensions in the future. As a result, pension systems have been reformed in many countries. In addition to reforming the financing principles of pensions, an important aim for social policy has become the postponement of retirement. In Finland, pension reform came into force at the beginning of 2005, with the aim, through a variety of measures, of encouraging workers to stay on at work. Under the new system it is possible to retire flexibly between the ages of 63 and 68. This article, using extensive survey-data, examines the plans of Finnish wage and salary earners to continue working beyond the lowest pensionable age of 63. First of all, it examines whether older Finnish workers on the whole intend to continue working beyond the pensionable age and whether economic incentives increase their intention to go on working. Secondly it analyses the way in which different socio-demographic and socio-economic factors are related to plans to continue working. The results show that Finns take quite a reserved attitude towards remaining at work in spite of financial incentives. Moreover, those who plan to continue working are more likely to be male, to be highly educated, to be private sector workers in good health and to be individuals who live alone. Private pension arrangements and long work careers decrease willingness to continue at work. Activities relating to the treatment of older workers in the workplace as well as the demands of the job and the extent of control over work also affect plans to go on working. Managerial work, features of the job and job satisfaction are also important but less so than the aforementioned factors. All in all the results show that the aim of postponing retirement will be hard to achieve since most workers do not want to go on working and would rather retire as soon as possible.
Get full access to this article
View all access options for this article.
References
1.
AhonenKati (2004), ‘Vapaaehtoisen lisäturvan merkitys palkansaajien eläkkeelle siirtymisessä.’ In TuominenE. Teoksessa (toim.) Eläkeuudistus ja ikääntyvien työssä jatkamisaikeet, Eläketurvakeskuksen raportteja 37, Helsinki: Hakapaino.
2.
BeehrTerry A. (1986), ‘The Process of Retirement: A Review and Recommendations for Future Investigation’, Personnel Psychology, 39 (1), 31–55.
3.
BerglindH. (1994), ‘Förtidspensionering och utslagningen på arbetsmarknaden’. I Publikationen Förtidspension – en arbetsmarknadspolitisk ventil? Socialdepartementet, Statens offentliga utredningar:148, Stockholm.
4.
BlekesauneMartinSolemPer (2005), ‘Working Conditions and Early Retirement’, Research on Aging, 27 (1), 3–30.
5.
BlöndalSveinbjörnScarpettaStefano (1999), The Retirement Decision in OECD Countries. OECD, Economic Department Working Papers no 202, Paris: OECD.
6.
Börsch-SupanAxel (2005), The 2005 Pension Reform in Finland. Finnish Centre for Pensions, Working Papers:1, Helsinki.
7.
DahlSvenn-ÅgeOivindNielsenVaageKjell (2004), ‘Gender Differences in Early Retirement Behaviour’, European Sociological Review, 19 (2), 179–198.
8.
ElovainioMarkoFormaPauliKivimäkiMikaSinervoTimoSutinenRisto (2005), ‘Job Demands and Job Control as Correlates of Early Retirement Thoughts in Finnish Social and Health Care Work Force’, Work and Stress, 19 (1), 84–92.
9.
Eläketurvakeskus, Kuntien Eläkevakuutus Ja Valtiokonttori (2004), Suomen työeläkkeensaajat vuonna 2003, Helsinki: Hakapaino.
10.
European Commission (2002), Increasing Labour Force Participation and Promoting Active Ageing, Report from the commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of Regions, Brussels.
11.
European Commission (2003a), Joint Report by the Commission and the Council on Adequate and Sustainable Pensions, European Commission, Directorate for Employment and Social Affairs, Brussels.
12.
European Commission (2003b), Employment in Europe 2003. Recent Trends and Prospects. Brussels: European Commission, Directorate for Employment and Social Affairs.
13.
European Commission (2004), Employment in Europe 2004. Recent Trends and Prospects. Brussels: European Commission, Directorate for Employment and Social Affairs.
14.
FormaPauli (2004), ‘Antavatko eri mittarit erilaisen kuvan työssä jatkamisesta?’FormaTeoksessaja VäänänenPauliJanne (toim.) Työssä jatkaminen ja työssä jatkamisen tukeminen kunta-alalla, Kuntatyö 2010-tutkimus, Helsinki: Kuntien eläkevakuutus.
15.
FormaPauliTuominenEilaVäänänen-TomppoIrma (2004), ‘Työssä jatkamisen haasteet yksityisellä ja julkisella sektorilla’TuominenEila Teoksessa (toim), Eläkeuudistus ja ikääntyvien työssä jatkamisaikeet, Eläketurvakeskuksen raportteja 37, Helsinki: Hakapaino.
16.
FormaPauliTuominenEilaTuominenKristiinaVäänänen-TomppoIrma (2005), Sukupuoli ja aiottu eläkeikä, unpublished manuscript.
17.
GallieDuncan (2002), ‘The Quality of the Working-Life in Welfare Strategy’ in Esping-AndersenGösta. with GallieDuncanHemerijckAntonMylesJohn, Why We Need a New Welfare State?London: Oxford University Press.
18.
GruberJonathanWiseDavid (1999), Social Security and Retirement around the World, Chicago and London: The University of Chicago Press.
19.
GrundyEmilyGlaserKaren (2000), ‘Socio-demographic differences in the onset and progression of disability in early old age: A longitudinal study’, Age and Ageing, 29 (2), 149–157.
20.
HakolaTuulia (2002), Economic incentives and labour market transitions of the aged Finnish workforce, Helsinki: Government Institute for Economic Research.
21.
HakolaTuuliaUusitaloRoope (2001), Let's Make a Deal – the Impact of Social Security Provisions and Firm Liabilities on Early Retirement, VATT-discussion papers 260, Government Institute for Economic Research. Helsinki.
22.
HenkensKéneTazelaarFritz (1992) ‘Early Retirement of Civil Servants in the Netherlands’, Journal of Applied Social Psychology, 24, (4) 1927–1943.
23.
HinrichsKarlKangasOlli (2003), ‘When Is the Change Big Enough to Be a System Shift? Small System-Shifting Changes in German and Finnish Pension Policies’, Social Policy and Administration, 37 (6), 573–591.
24.
HinrichsKarl (2000), ‘Elephants on the Move. Patterns of Public Pension Reform in OECD Countries’, European Review, 8 (3), 353–378.
25.
HuhtaniemiPäivi (1995), The Sense of Life Control and Thoughts of Early Retirement, Publications of University of Turku, Serie B:210, Turku.
26.
HuhtaniemiPäivi (1999), Varhaiseläkeajatukset, työn kuormittavuus ja koettu elämänhallinta eläkkeelle siirtymisen ennustajina, Työ ja Ihminen, 13 (3), 220–229.
27.
HyttiHelka (2004), ‘Early Exit from the Labour Market Through the Unemployment Pathway in Finland’, European Societies, 6 (3), 265–297.
28.
JacobsKlausKohliMartinReinMartin (1991), ‘Testing the Industry-Mix Hypothesis of Early Exit’, In KohliMartinReinMartinGuillemardAnne-MarieGunsterenHerman (eds.) Time For Retirement: Comparative Studies of Early Exit from the Labour Force, New York: Cambridge University Press.
29.
KannistoJari (2004), Effective retirement age in the earnings-related pension scheme in 1996–2003, Helsinki: The Finnish Centre of Pensions.
30.
KarasekRobert A, (1979), ‘Job Demands, Job Decision Latitude and Mental Strain: Implications for Job Redesign’, Administrative Science Quarterly, 24 (2), 285–308.
31.
Komiteanmietintö (1991), Eläkekomitea 1990:n mietintö. Sosiaali- ja terveysministeriö, Helsinki: Valtion painatuskeskus.
32.
KrauseNiklasLynchJohnKaplanGeorgeCohenRichardGoldbergerDebbieSalonenJukka (1997), ‘Predictors of Disability Retirement’, Scandinavian Journal of Work Environment and Health, 23 (6), 403–413.
33.
Kuntien eläkevakuutus (2004), Kunta-alan eläkkeet 2003, Helsinki: Kuntien eläkevakuutus.
34.
LehtoAnna-MaijaSutelaHanna (2005), Threats and Opportunities. Findings of Finnish Quality of Work Life Surveys 1977–2003, Helsinki: Statistics Finland.
35.
LiljaReija (1996), ‘Microeconomic Analysis of Early Retirement in Finland’, In WadensjöEskil (ed) Early Exit from the Labour Markets in the Nordic Countries, Amsterdam: North Holland.
36.
McGoldrickAnne E.CooperCary L. (1990), ‘Why Retire Early?’, Prevention in Human Services, 8 (2), 219–237.
37.
MeinGillMartikainenPekkaStansfeldStephen A.BrunnerEricFuhrerRebeccaMichaelMarmot (2000), ‘Predictors of Early Retirement in British Civil Servants’, Age and Ageing, 29 (6), 529–536.
38.
MylesJohnPiersonPaul (2001), ‘The Comparative Political Economy of Pension Reform’, in PiersonPaul (ed.) The New Politics of the Welfare State. Oxford: Oxford University Press.
39.
oecd (2003), Aging and Employment Policies. Finland, Paris: OECD.
40.
oecd (2005), Ageing and Employment Policies, Synthesis Report, Forum Organised by the FPS Employment, Labour and Social Dialogue and the OECD, Brussels, 17 and 18 October 2005.
41.
PalmoreErdmanFillenbaumGerdaGeorgeLinda (1982), ‘Predictors of Retirement’, Journal of Gerontology, 37, (6) 733–742.
42.
PerrachiFrancoWalchFinis (1994), ‘Trends in Labour Force Transitions of Older Men and Women’, Journal of Labour Economics, 12, 210–242.
43.
PiispaMinnaHuuhtanenPekka (1995), Eläkeajatukset murroksessa. Muutokset työ- ja eläkeajatuksissa 1990–1994, Ikääntyvä arvoonsa – työterveyden, työkyvyn ja hyvinvoinnin edistämisohjelman julkaisuja 19, Työterveyslaitos ja Työsuojelurahasto, Helsinki.
44.
ReitzesDonald C.MutranElisabethFernandezMaria (1998), ‘The Decision to Retire: A Career Perspective’, Social Science Quarterly, 79, 607–619.
45.
RuhmChristopher J. (1996), ‘Gender Differences in Employment Behaviour During Late Middle Age’, Journal of Gerontology, 51B, S11–S17.
46.
SauramaLaura (2004), The Experience of Early Exit. Reasons for and Consequences of Early Retirement, Finnish Centre for Pensions, Studies 2/2004, Helsinki.
47.
Statistics Finland (2005). Labour Force Statistics 2005.
48.
SzinovaczMaximilliane (1996), ‘Couples’ Employment/Retirement Patterns and Perceptions on Marital Quality’, Research on Aging, 18 (2), 243–268.
49.
SzinovaczMaximillianeDevineyStanley (2000), ‘Marital Characteristics and Retirement Decisions’, Research on Aging, 22, (5), 470–498.
50.
TakalaMerviUusitaloHannu (eds.) (2002), Varhaiseläkkeet muuttuvat – mutta miten? Arvioita yksityisalojen eläkkeiden kehittämistä koskevan periaatesopimuksen vaikutuksista, Eläketurvakeskuksen raportteja 2002:30, Helsinki: Hakapaino.
51.
TaylorMary AnneMcFarlaneShorelynn (1995), ‘Predictors of Planned Retirement Age: An Application of Beehr's Model’, Psychology and Aging, 1, 76–83.
52.
EilaTuominenSiniLaitinen-Kuikka (2003), Pension policy responses to changing division of labour within the family, Finnish Centre for Pensions, Working Papers 5, Helsinki.
53.
Valtiokonttori (2004), Valtion eläkkeet 2003, Helsinki: Valtiokonttori.
54.
VäänänenJanne (2004), ‘Vapaaehtoinen eläkesäästäminen: Kuka ja miksi?’, in FormaPauliVäänänenJanne (eds.) Työssä jatkaminen ja työssä jatkamisen tukeminen kunta-alalla. Kuntien eläkevakuutus, Jyväskylä: Gaudeamus.
