Finland is among the first welfare states in the world where a significant proportion of the population is aged. Aging population, together with a declining birth rate and rising net immigration, are topical policy issues in Finland. [Please keep reading: article continues after data.]
The birth rate in Finland and across the world has fallen more rapidly than expected during past decade. In October 2024, as part of its Population Policy Programme, the Finnish government published a report by Research Professor Anna Rotkirch identifying proposals to stop declining birth rate. Before that, a Demographic Report (2021) by the same author 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.
On the other hand, net immigration of the recent years has surprised on the upside. Although the level of net immigration has levelled off from the peak year of 2023, net immigration to Finland still remains higher than during the 2010s.
– Read more: From demographic pressures to new growth from our Debt Management Annual Review 2025
– Read more: Increase in immigration improves outlook for the Finnish economy from our Debt Management Annual Review 2024
Reform of “robust and well-functioning” Finnish pension system underway
The pension system is a central component of Finland’s public finances. Finland’s earnings-related pension assets, including public sector pension assets, accounted for 101% of GDP in 2025. 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 presented a proposal to the Finnish Government in January 2025, after which the proposal will be compiled into a government bill.
- Read more on the proposal: Pension reform strengthens pensions financing (Finnish Centre for Pensions, January 2025)
- More information on the 2025 Pension reform
- 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
- 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