Suchergebnisse

Abstract
As of February 2017, Finns have been able to claim a partial old-age pension early at age 61 independent of their working hours or earnings. Focusing on the take-up of the partial old-age pension in Finland, this article investigates whether early pension claiming is associated with expected longevity. We assume parental longevity to signal expected longevity. We use total register data on those eligible to claim a partial pension at age 61 in 2018 or 2019 and link this data to the information on their parents' birth and death dates. To our knowledge, there exists no previous register-based study that uses parental longevity to explain pension claiming behavior. Since the longevity of the same-sex parent in particular influences subjective life expectancy, the variables of interest were the same-sex parent being alive and the age (at death) of the same-sex parent. The baseline results show a negative connection between the same-sex parent being alive and claiming. The connection disappears after controlling for gender, but the negative connection between the age (at death) of the same-sex parent and the claiming remains significant in a fully adjusted model. Known risk factors for shorter longevity, such as being male, having a lower income and wealth, also increase the likelihood of claiming. The results indicate that people take their expected longevity into account when making pension claiming decisions. This may hold critical implications for actuarial neutrality, the key assumption of the pension system design, and can lead to an unexpected increase in public pension expenditure.

Abstract
The aims of this study were to explore patterns of work and retirement of Finnish employees and self-employed persons in a pension system with a flexible old-age retirement age and how income develops in these patterns. We used individual-level register data from Statistics Finland of the total Finnish birth cohort born in 1949. The cohort was 62–70 years old over the study period 2011–2019. Sequence and cluster analyses were used to identify typical trajectories of individuals' transitions in and out of salaried work and self-employment and work in old-age retirement. Our analysis yielded a ten-cluster solution: four clusters were found for employees who did not continue working in retirement (62%), four clusters for those employees who continued working in retirement (26%), and two clusters for the self-employed (12%). The clusters differed by the timing of retirement. The results showed that employees who retired earlier on an old-age pension and who were not working afterwards had lower incomes. Their incomes also decreased after old-age retirement. Employees who worked for several years in retirement had higher incomes which remained stable between the ages of 62 and 70. We found two types of self-employed persons: those who continued working in retirement with high incomes and those who stopped working earlier and had lower incomes. The results indicate that inequalities between lower and higher income groups might become exacerbated in a flexible retirement system.