Pensioners now form the majority in 78 Finnish municipalities

Pensioners make up over half the adult population in 78 Finnish municipalities, according to new statistics from the Finnish Centre for Pensions, Yle reports. The highest concentrations are found in eastern Finland, where over 60 percent of residents in Ilomantsi, Hyrynsalmi, and Rääkkylä are retired.

Nationwide, one in three Finns aged 16 or older receives a pension, but the share in these municipalities is nearly double the national average. The lowest pensioner rates—below 23 percent—are in Liminka, Espoo, and Vantaa.

Kaarlo Reipas, chief mathematician at the Finnish Centre for Pensions, expects the proportion of pensioners to stabilize or decline slightly over the next 20–25 years due to rising retirement ages and the gradual passing of large age cohorts. He described the pension system as resilient to demographic shifts, noting that reforms like increased funding and adjusted retirement ages have prepared Finland for an aging population.

Pension levels at historic high but set to decline

Finnish pensions reached an all-time high relative to wages in 2022 or 2023, according to Reipas, with the average pension equaling roughly 55 percent of the average salary. However, this ratio is expected to drop below 50 percent in the coming decades due to stricter accrual rules and life expectancy adjustments.

The surge in pension levels stems from the full maturation of the earnings-related pension system introduced in the 1960s, combined with recent inflation-driven index adjustments. Yet regional disparities remain stark: the average monthly pre-tax pension in Kauniainen (€2,138 nationally) far exceeds that in Soini, Etelä-Pohjanmaa, where pensions are less than half the top-tier amounts.

Gender gap persists despite narrowing pay differences

Women’s pensions remain about 20 percent lower than men’s, reflecting historical pay gaps during their working years. While the gap is closing as wage equality improves, Reipas cautioned that pension disparities lag decades behind pay reforms. “Even if pay gaps vanished today, it would take decades for pension equality to follow,” he said.

In Soini, where pensions are among Finland’s lowest, residents like Laila Tikka—a retired teacher receiving over €2,000 monthly—consider her pension fair for a 40-year career. Others, like Heli Kuula, who worked over 30 years in cleaning and manufacturing, survive on roughly €1,200 monthly, deeming it insufficient but unavoidable. “It’s not fair, but what can I do?” Kuula said.