Those born in 1965 to receive smaller pensions due to new calculation formula
Published
A new pension calculation formula could reduce the pensions of those born in 1965 by about 5.5 percent. The information was published by Verkkouutiset. Those born in 1965 are the first Finnish age group for whom the lowest retirement age is higher under the new system.
The lowest retirement age is the earliest age at which a person can retire on an old-age pension. In Finland, the retirement age is being raised gradually because people are living longer and longer. The changes particularly concern those born after 1965. The purpose of the reform is to keep the pension system sustainable and financeable in the future.
If a pension is calculated using the new formula, the amount of the pension may be smaller than with the old calculation method. This concerns the calculation of the pension, not necessarily all pension recipients in the same way. The exact effects depend on factors such as the length of one's working career and the size of one's salary. Therefore, people should check their own pension forecast, for example through the service of Kela or their pension company.
The reform has sparked discussion about how the pension system affects different age groups. More information about the reform and its effects can be obtained from pension companies and the Finnish Centre for Pensions.
Sources: Verkkouutiset
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