Effect of longer life-spans on pensions as of 2010

A life expectancy coefficient will be used to offset the growth in the average life-span and rise in pension expenditure. If the average remaining life-span of a 62-year-old continues to increase, the amount of new pensions will be reduced by this coefficient.

The coefficient will be calculated for the first time in 2009 on the basis of the mortality statistics for 2003–2007 and the coefficient will be 1. The coefficients for later years will be proportional to this figure.

During the first few years, the reduction will be insignificant. It has been estimated that the life expectancy coefficient will reduce pensions starting around 2030–2040 by some 10 per cent, which can be compensated for by remaining in working life for twelve to eighteen months longer.

Read more:

- Evaluation of the effect of the life expectancy coefficient (tyoelake.fi)