According to the recent Pension Barometer data conducted by the Finnish Centre for Pensions (Eläketurvakeskus, ETK), Finnish citizens' trust in the pension system remains at a high level. However, the confidence has decreased slightly in comparison with previous years' Pension Barometer surveys. Two-thirds of respondents trust the pension system and almost as many think that pension assets are managed responsibly.
- 66 % of Finns trust the pension system, which is 6 percentage points less than a year ago.
- Almost 50 % of the respondents said they believe that pensions will still be pay out in the future. In the previous poll, this number was slightly higher, around 55 %.
- In addition, about half of the respondents to the poll think that the younger generations have to pay unreasonably high contributions to fund the increasing expenditure on pensioners.
The general uncertainty about the future and the development of the economy, rising prices and interest rates as well as the fluctuations of the financial market are all likely to be reflected on how people will trust the pension system. However, the decreasing trust does not seem to be reflected in the estimates of one's own personal economic security during retirement. Almost 60 % of Finns estimate that they will have a reasonable standard of living in retirement, which is the same proportion from the poll one year ago.
The poll tested the basic knowledge of pension security as well. The best-known fact was that if someone’s earnings related pension is very low, it is supplemented with the national or the guarantee pension. Around two out of three respondents knew that the retirement age is not the same for everyone. However, almost one third believe otherwise. More than 60 % of Finns know that the majority of pension contributions are used to finance current pensions in payment.
The most uncertainty concerns on how late retirement affects the pension amount. About one half of the respondents know that if they start getting their pension after reaching their retirement age, their pension is permanently increased with an increment for late retirement.
Although the majority of respondents know the basic principles of the pension system, many have misconceptions and lack of necessary information.
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The full information and the source text can be found at Finnish Centre for Pensions website.
Published 31.07.2023, FINREPO