Concerns about future pensions push young Finns to save: Survey

ISTANBUL

An increasing number of young adults in Finland are setting aside money for retirement amid growing concerns about the future adequacy of the pension system, according to a survey published Thursday.

The study published by the Finnish Centre for Pensions found that 48% of people between the ages of 25 and 34 are saving for retirement, marking an 11 percentage point increase compared with a similar survey in 2019.

The survey, based on responses from 1,600 working-age participants, suggests that declining confidence in the long-term reliability of pensions is a key factor behind the trend.

Economist Kati Ahonen, who participated in the research, said many young people are becoming increasingly skeptical about whether they will receive adequate pension benefits in the future.

“Young people are becoming more critical about whether they will receive pensions in due course and whether the pension is sufficient for them,” said Ahonen.

Some young Finns are also motivated by a desire for greater financial independence.

Katariina Haapanen, a 28-year-old respondent cited in the report, said she saves more than €1,000 per month because she lacks confidence in the pension system.

“I don’t want to be dependent on anyone else or waiting for something I’m not completely sure about. It gives me a lot of peace of mind to know that I can go look at my bank account and know exactly what’s there,” she told Finland’s public broadcaster Yle.

Beyond concerns about pension security, experts noted that many young adults are also saving to retire earlier than the official retirement age or build financial security to achieve lifestyle goals, such as travel and hobbies.

Older age groups are also putting aside more money for retirement, according to the survey, as greater access to information about pensions encourages people to manage their finances more actively.

But the report noted that not everyone can save. Students and younger workers with limited income often struggle to set aside funds.

Kim Jalonen, a 22-year-old student at the Pop and Jazz Conservatory, said his financial situation makes long-term savings difficult despite working while studying.

Still, he expressed confidence in Finland’s pension system, though he voiced concern about the gradual increase in the official retirement age.