Finns lose confidence in pension system, EVA survey finds

Nearly half of Finns believe the pension system will collapse and that pensions already earned cannot be paid, according to a survey by the Finnish Business and Policy Forum EVA, reported by Yle.

Younger age groups were the most pessimistic. Among people aged 26 to 35, 62 percent expected the pension system to collapse. Among those aged 36 to 45, 49 percent held the same view.

People approaching retirement were considerably more confident. Only 29 percent of respondents aged 56 to 65 expected the system to collapse.

“Those closest to retirement or already receiving a pension have the strongest trust in the pension promise. Among younger age groups, a majority do not believe the system can keep its promise,” said Sami Metelinen, EVA’s managing editor and the author of the analysis.

Metelinen said the generational divide in confidence posed a serious problem for the system’s legitimacy.

Cutting pensions did not receive majority support in the survey. Overall, 36 percent considered cuts necessary, although support rose to 51 percent among 26 to 35 year olds. Raising the retirement age was supported by 40 percent of respondents.

A statutory cap on pensions was supported by 61 percent, while 72 percent approved restricting the guarantee pension for people who had lived in Finland for only a few years.

“Different age groups more readily accept solutions that do not primarily affect them. Young people are more willing to cut current pensions, while those who have already reached retirement age more readily accept raising the retirement age,” Metelinen said.

Thirty six percent supported a Swedish style pension system in which individuals would decide how to invest part of their pension contributions. Younger respondents were more favourable towards the proposal than older people.

The survey was conducted by Taloustutkimus and received just over 2,000 responses in the spring. Its margin of error was 2 to 3 percentage points in either direction.