FINLAND - A new OECD report has called for a comprehensive reform strategy to encourage older people in Finland to stay in work.
The report Ageing and Employment Policies in Finland said that though the new pension reforms would phase out early retirement schemes, more needs to be done to check the rapidly rising old-age dependency ratio. “Raising employment rates, especially among the older population, will be the key to meeting these challenges,” the report said.
The report recommends removing “incentives” to early retirements such as unemployment benefits, unemployment pension, disability pension and individual early retirement pension.
Reforms, which would make it possible to combine the old-age pension with income from a full-time or part-time job as a way of promoting a flexible work-retirement path, should be introduced.
“Already at the age of 50, 18% of individuals are receiving either unemployment or disability benefits, increasing to more than 46% by the age of 60.
“Moreover, in the age group 60-64 most unemployed persons transfer to the unemployment pension with a further 20% relying on disability benefits and about 10% rely on the individual early retirement pension,” the report added.
Policy actions directed towards employers, to encourage greater hiring and retention of older workers, and towards older people themselves to improve their profitability should also be put into place.
Premier Inn owner Whitbread has cut its defined benefit (DB) pension deficit to £162m ahead of its agreed £3.9bn sale of Costa Coffee to Coca-Cola.
Trends in longevity and mortality have proven difficult to forecast historically, but are vital to funding schemes and ensuring adequate retirement pots. James Phillips explores the key influences
The two-sided simplified annual pensions statement should be applauded, even if it missing information, says Jonathan Stapleton.
LGPS Central has appointed Hermes Equity Ownership Services (EOS) to run engagement and voting services for the investments of its nine local authority funds.