Omnium Employee Benefits

Finnish surveys prove pension knowledge improves with age

What is the main reason you have a pension?

To provide an income once you stop working. (I try to avoid using the word ‘retirement’, as it suggests that one day you are working, the next you find yourself on a river cruise wearing a lemon-coloured V-neck sweater).

This may sound like stating the obvious, however, your life once you stop working could span decades and include different phases as far as both income and expenditure are concerned.

It is a well-known fact that pension knowledge increases with age. This is logical as a pension becomes more relevant and higher up your list of priorities the older you get.

It is interesting, therefore, to see the results of three independent surveys of pensions in Finland. It has been ranked the best country in Europe for ‘retirement’ for the last two years, based on analysis of:

  • Public spending.
     
  • Average retirement age (by type of pension scheme not State Retirement Age).
     
  • Average workplace pension contribution.
     
  • Percentage of population who participate in workplace pensions and similar schemes.
     

Yet, despite this positive news, over 40% of Finnish adults under the age of thirty admit being worried about their future pension income.

Less than a third of respondents had read their earnings-related pension statements and feel they have received important information about their pension. A further 25% had read their earnings-related pension statements but do not know if the information is necessary.

Many commented they were not interested in pension issues and that they planned to study things when they were closer to retirement age.

This proves the point that engagement with the younger generations regarding pensions is a common issue regardless of country and quality of life in retirement. Whether or not this can be overcome entirely is debatable, however, the lesson here is that good communication as early in life as possible can at least sow the seed.

As I always say, “Your older self will thank your younger self in the years to come”.

We can help

We can provide financial education to your workforce, including pension and later-life planning. Give me a call on 01483 205890.

 

 

Sources:    Eläketurvakeskus – Finnish Centre for Pensions

                Blacktower Financial Management Group – The World’s Best Countries for Pensions 2021

                Ömsesidiga Arbetspensionsförsäkringsbolaget Elo – Annual and Responsibility Report 2021

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