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By entering your gender and year of birth into Yle's pension calculator, you can see an estimate of the amount — relative to every euro of pension contribution paid in over your working life — you will receive in relation to others.
The tool is based on information from the Finnish Centre for Pensions.
Keep in mind that the calculator estimates the relative value of earnings-related pension payments, not the amount of the pension itself.
The data shows that the older you are, the more value you get for your contribution, with anyone born before 1960 enjoying vastly better "bang for their buck" compared to younger cohorts.
Women also received more pension income relative to contributions across all ages, due to the simple fact that they tend to live longer than men, according to the Finnish Centre for Pensions' Senior Mathematician, Kaarlo Reipas.
The older the age group, the more pronounced the gender gap.
Differences across age and sex
According to the Finnish Centre for Pensions calculations, a woman born in 1940 gets the most return, receiving as much as seven euros in pension for every euro paid in occupational pension contributions. Men in the same age group, on the other hand, get 4.4 euros for every euro paid in.
At present, those born in 2010 look the least well positioned to benefit from the current pension system. If the system were to continue in its present set-up, this younger cohort would receive two euros or less for every euro they contribute.
The calculations are based on Finland's current pension system. That said, if the pension system changes or, for example, the birth rate rises, the forecast would also change.
Women's salaries are lower on average, so they pay less pension contributions. However, because of a longer lifespan, they have more time to collect their pension than men.
"For this same reason, the widow's pension is paid more often to women, which increases the gap even more," Reipas said.
However, the younger the age group, the smaller the difference in relative pension income between women and men, due to there being less of a gap in life expectancy in younger generations.
Young generations always support their elders
The data also highlights the differences between generations.
While those born in 1940 receive an average of over five euros in pension for every euro they pay, the ratio for those born in 2010 is only 1.7. Meanwhile, those born in 1950 get three euros for every euro they pay.
"The system works so that the working generation always pays for the pensions that are being paid out at that moment. When the pension system was created in the 1960s, pensions were smaller and there were fewer of them, so the contributions could also be kept low," Reipas noted.
The largest portion — some 24 percent — of pension contribution comes from the employer, while a smaller amount — 7.15 percent (for those under 53) — is deducted from the employee's salary.
Finland's ageing population means that contributions from working people are not keeping pace with pension expenses.
"For about ten years now, more money has gone into paying out pensions than has been collected as occupational pension payments," Reipas said.
Is the current system sustainable?
The sustainability of the current pension system's funding is a perennial topic for public debate. However, according to the Finnish Pension Centre's most recent calculations from 2022, funding is at a better level than the discussion might suggest.
"The view at the moment is that, at roughly the current levels of pension contributions, we will manage well into the future," Reipas explained.
He predicts that the true pinch point will not arrive until the end of the century, although it is impossible to guess how factors like birth rate may play out that far into the future.
In fact, pension reform is slated for this government term, with long-term funding currently under examination by a working group formed last October. Proposals should be completed by the beginning of next year.
Note: The data used for the calculator relates to occupational private sector pensions, which make up slightly more than half of all pensions in Finland. The remainder fall under public sector or guarantee pension schemes. Some historical differences exist between schemes, therefore only private sector data was utilised for the calculator.
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