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OECD urges Finland to limit retirement routes

Ministry of Social Affairs and Health
Publication date 29.1.2004 7.30
Press release -

A new OECD country report on Finnish policies on age and employment suggests that Finland should limit access to early retirement to improve employment levels among older people of working age.

The report, which was issued in January, states that 18 percent of people over 50 receive unemployment or work disability benefits. Among 60 year-olds the figure is 46 percent. However, most unemployed 60-64 year-olds receive unemployment pensions, a form of early retirement.

According to the report, Finland should control the numbers of people being transferred from the job market to early retirement and put greater emphasis on work attraction. It expresses the concern that population ageing could severely drain public spending, lead to a labour shortage and sluggish economic growth.

Employment in Finland among 35-50 year-olds is high compared to many countries, but low among the over 50s. However, according to the report, Finland is doing much to try to redress the situation and improve employment among older age groups. Key measures are the new earnings-related pension regulations which come into force in 2005, which aim to cut the average retirement age by 2-3 years.

The OECD report ‘Ageing and Employment Policies inFinland’ is available on this website.

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