Finland: Tackling the demographic challenge
Managing change by increasing employment rates, digitalisation and immigration.
CH – 08/2019
pension systems must respond to the challenges posed by demographic change. An
increasing proportion of pensioners in the general population and rising life
expectancy mean that systems have to be adapted in order to ensure that they
can continue to be financed in the future.
is particularly affected by demographic change due to its very low birth rate
compared to other European countries. Current figures on population statistics
have revealed an unexpectedly sharp decline in the proportion of young people. As
a result, the Finnish Centre for Pensions has updated its long-term forecast and determined that the contribution rate could rise to 30 percent in the
projection period 2019 to 2085. This raises the pressing question of how
fairness between the generations can be guaranteed in the future.
Heikki Tikanmäki of the Finnish
Centre for Pensions points out that the financial prospects of the pension system
are stable for the coming decades. Nevertheless, the low birth rate is a
serious issue. The time has come to consider how demographic trends can be
influenced. Anna Rotkirch from the Family Federation of Finland believes that
this should include analysing the possibilities of further increasing
employment rates in individual age groups and exploiting the opportunities
offered by digitalisation and immigration.