Ageing and Employment Policies: Finland (Ageing and by Organisation for Economic Co-Operation and Development

By Organisation for Economic Co-Operation and Development

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Extra resources for Ageing and Employment Policies: Finland (Ageing and Employment Policies)

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The current public pension system in Finland The current public old-age pension scheme in Finland consists of two parts: the national pension and the earnings-related pension. The national pension scheme guarantees a minimum income for all Finnish residents who are not entitled to an earnings-related pension, or to those for which the latter is small. Since 1996, the national pension has been earnings-tested with regard to earnings-related pension benefits, and therefore is of minor importance for most people.

Finally, Chapter 6 examines the possibilities to raise the overall employment rate in the future, emphasising the importance of introducing a broad range of reforms. It also examines the importance of co-operation between government bodies, social partners and individuals. AGEING AND EMPLOYMENT POLICIES: FINLAND– ISBN-92-64-02030-6 © OECD 2004 29 Chapter 1 THE CHALLENGE AHEAD Like many other OECD countries, the population in Finland is ageing. But the ageing process is hitting Finland earlier than in most other OECD countries.

AGEING AND EMPLOYMENT POLICIES: FINLAND– ISBN-92-64-02030-6 © OECD 2004 47 advantage of an early retirement scheme. Of course, these retention rates will reflect both voluntary and involuntary quits and so, for older workers, the decline in their retention rates may also reflect involuntary job loss rather than just voluntary retirement. Finnish retention rates are relatively high compared to other countries. In fact, among Finns aged 35-39 in 1995, almost 87% of the men and 80% of the women were still working in the same enterprise in 2000.

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