Mikko Mursula, new chief executive officer of Ilmarinen in Finland, has weighed into a new discussion in the Nordic country on raising the pension age to 70, arguing that other things need to change in society before taking that step.
Currently, the pension age in Finland – which depends on date of birth – is 65 for people born in 1962, rising to 68 years and 11 months for those born in 2007.
Earlier this year, Denmark raised the pension age to 70 for people born after the end of 1970, which compares to the current retirement age there of 67 on average.
In France, however, fury at an increase in the pension age to 64 from 62 has been a key factor in the country’s current political crisis.
Mursula said a recent proposal in an article in newspaper Helsingin Sanomat by businessman Heikki Bergholm – former chair of state-owned investment company Solidium – to raise the retirement age to 70 was dividing opinion in Finland.
Bergholm argued the change would strengthen public finances and respond to the increase in life expectancy, the Ilmarinen CEO said.
“However, it is good to consider whether separate decisions on raising the retirement age are still needed in Finland or whether development is already moving in the right direction,” he said.
Mursula, who was promoted to the top job at the €63bn pension insurance company from chief investment officer and deputy CEO on 1 September, said Finns were staying in the workforce longer than ever before, but questioned whether the pace of that development was fast enough when public finances were in deficit and national debt was growing.
“Raising the retirement age is a major societal change that cannot be implemented quickly”
Mikko Mursula, Ilmarinen’s CEO
Noting Denmark’s move to increase the retirement age to 70, he said the two countries had similar demographic structures, but said one had to consider how society could ensure people could cope with working for longer.
“Raising the retirement age alone will not solve the problems if our work ability deteriorates even before the target age. Investments in work ability management, proactive healthcare and work adaptation are essential,” he noted.
Another key issue was how the labour market treated ageing workers, he said, adding it was often difficult for people over 55 to 60 to find employment, even if they had enough desire and skills.
“If we want working careers to be longer, employers’ attitudes must change,” Mursula said.
A job seeker over 60 should not be a risk, but an opportunity as a skilled worker with experience, networks and the ability to solve problems, he said.
Work flexibility, part-time solutions and job modification were also ways to support continued employment, he added.
“Raising the retirement age is a major societal change that cannot be implemented quickly. Possible changes would require a long transition period and careful preparation,” Mursula warned.
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