Doctor and patient at a health centre appointment in Espoo. LEHTIKUVA
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The length of working careers in Finland is increasing, but at a slow pace. While most Finns are seeing their careers extend, for some, careers are becoming shorter, according to a new study by the Finnish Centre for Pensions (ETK).
The length of a person’s career and their earnings during it are crucial factors for pension accumulation and financial security in retirement.
In recent years, ETK has developed multiple metrics to measure career length, including the latest measures for earnings-related careers and active work careers.
The earnings-related career metric accounts for all work where pension contributions have been made, including periods overlapping with benefits like parental leave, sickness allowance, and unemployment. The active work career metric focuses on periods when a person is primarily employed full-time.
The study shows that the overall length of earnings-related careers has increased gradually. Between 2010 and 2022, the average career length between the age of 18 and retirement increased by 1.2 years. The most significant growth occurred among those aged over 50, where careers have extended by 2.1 years. On average, men accumulate longer working careers than women, though this gap is narrowing as women’s careers have lengthened at a faster rate.
Men with lower education levels face challenges in extending their careers. While the average length of careers is growing, some segments of the population are not seeing these benefits. Around one in ten Finns have seen their careers shorten, particularly men with lower educational qualifications. In 2022, 10% of men had an earnings-related career of 16.4 years or less by the time they reached retirement age, while for women the figure was 15.5 years or less.
Conversely, careers for those with higher education are showing steady growth. According to ETK’s modeling, individuals born in 1987 with higher education are expected to have careers averaging 38 years. Many will see careers extending beyond this average. In the future, careers of over 40 years may become commonplace.
The study highlights significant gender differences in working careers. Women’s careers typically involve more periods of atypical employment. Women frequently juggle earnings-related work with other primary activities, resulting in shorter active work careers across all education levels.
Family leave significantly shortens women’s active work careers compared to men. For both genders, disability reduces active work careers the most among those with secondary education, but the impact is greater for women. Additionally, periods of overlapping employment and unemployment benefits are more common for individuals with secondary education than for those with higher education, especially among women.
The findings underscore the need to address disparities in career length and to ensure that working conditions support longer careers for all, particularly for those with lower educational attainment.
HT
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Source: www.helsinkitimes.fi
