Young Finns lack trust in pension system, oppose higher contributions

Nearly half of Finns believe that the country’s pension system will collapse in the future, rendering it unable to pay earned pensions. Among those under 45, a majority share this view. The youngest generations increasingly reject the idea of raising

By: helsinkitimes.fi

Jan 04 2025
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Young Finns lack trust in pens

Nearly half of Finns believe that the country’s pension system will collapse in the future, rendering it unable to pay earned pensions. Among those under 45, a majority share this view. The youngest generations increasingly reject the idea of raising pension contributions, according to the autumn 2024 Values and Attitudes Survey by EVA.

Only 23% of respondents expressed confidence in the pension system’s ability to pay future pensions.

Trust was lowest among younger age groups and those currently employed. Overall, confidence in the sustainability of Finland’s pension system is at its lowest since the economic recession of 1992, according to EVA’s historical data.

The survey explored public attitudes toward potential reforms to the pension system. A strong majority (83%) of Finns supported increasing employment rates as the most acceptable way to stabilize the system’s finances if it becomes unsustainable.

In contrast, the willingness to accept higher pension contributions has dropped significantly. Only 42% of respondents supported this option, down 13 percentage points since 2019. The decline was most pronounced among younger people: whereas about half of all age groups backed increased contributions in 2019, only around 30% of those under 35 now find it acceptable.

“Raising pension contributions would further tighten an already heavy tax burden, reducing disposable income for workers and increasing the cost of employment. The pension system must be reformed without resorting to higher contributions,” said Sami Metelinen, editorial manager at EVA and author of the survey analysis.

Finns are split on acceptable ways to reform the pension system. Pensioners generally oppose measures that would reduce benefits, while younger age groups show more openness to such changes. For example, 41% of all respondents supported freezing pension index increases, but among those aged 26–35, a majority of 55% found this option acceptable.

Proposals to increase the risk-taking of pension funds have not garnered widespread public support, with many respondents uncertain about the issue. Most oppose raising the retirement age, extending working hours, or cutting pensions directly.

The results are based on responses from 2,018 individuals, with a margin of error of 2–3 percentage points. Data collection took place from 8–21 October 2024 through Taloustutkimus Oy’s online panel. The sample was weighted to represent Finland’s 18–79-year-old population, excluding Åland. Statistical analysis and graphical representations were produced by Pentti Kiljunen of Yhdyskuntatutkimus Oy.