Finland is among the first welfare states in the world where a significant proportion of the population is aged. Aging population is and remains a big policy issue in Finland. [Please keep reading: article continues after data.]
Most recently the Demographic Report (2021), commissioned by the Prime Minister’s Office, outlined policy advice for sustainable demographic development. Experts’ recommendations included increasing the family-friendliness of society, investments to education and lifelong learning (particularly for men), higher employment rates for people aged 65-74, more net immigration and more tailored immigration policies. These recommendations are largely in line with reforms that are already underway in Finland.
Reform of “robust and well-functioning” Finnish pension system underway
Finland’s earnings-related pension assets, including public sector pension assets, accounted for approximately 90 per cent of GDP in 2023. In international evaluations, the Finnish pension system has repeatedly been ranked among the best performers. Nonetheless, to prepare for future challenges, a pension system reform is currently underway in Finland. Two working groups will prepare and present a proposal for the pension reform to the Finnish Government by January 2025, after which the proposal will be compiled into a government bill.
- Read more on the goals and schedule of the Pension reform 2023-2025
- Most recent international evaluation: The Finnish pension system is robust and well-functioning, but it must prepare for future financial challenges (Finnish Centre for Pensions, September 2021)
- Read also: Long-term projections: Modest growth continues (Finnish Centre for Pensions, February 2024)
Recent reforms carried out by the previous government:
- Family leave reform that extended flexibility and choice for families came into force in 2022.
- Raising the minimum school leaving age from 16 to 18, aiming at all students to finish an upper secondary qualification.
- Increasing work-based immigration, attracting international talent and reforming immigrant integration services: target here is to at least double work-based immigration from its current level by 2030.
- Other active labour market measures: please see Labour Market Reforms
Sources:
Official Statistics of Finland (OSF): Population projection [e-publication]. ISSN=1798-5153. Helsinki: Statistics Finland [referred: 10.11.2021]. Access method: http://www.stat.fi/til/vaenn/index_en.html
Official Statistics of Finland (OSF): Migration [e-publication]. ISSN=1797-6782. Helsinki: Statistics Finland [referred: 10.11.2021].
Official Statistics of Finland (OSF): Educational structure of population [e-publication]. ISSN=2242-2919. Helsinki: Statistics Finland [referred: 10.11.2021]. Access method: http://www.stat.fi/til/vkour/index_en.html
Official Statistics of Finland (OSF): Births [e-publication]. http://www.stat.fi/til/muutl/index_en.html
ISSN=1798-2413. Helsinki: Statistics Finland [referred: 10.11.2021] Access method: http://www.stat.fi/til/synt/index_en.html