Finland ranks third, ahead of Sweden and Norway, in international pension study

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Finland ranks third among 34 nations in an international study measuring retirement incomes, while Sweden ranks 5th and Norway 6th. (iStock)
An international study measuring retirement income systems of 34 different countries has ranked Finland as having the third-best in the world, behind the Netherlands and Denmark.

As in previous years, the tenth annual Melbourne Mercer Global Pension Index graded the pension systems of countries based on criteria such as the adequacy of pensions, the sustainability of pension systems and their administrative integrity.

Finland’s position improved over its fifth place ranking last year due to changes in how the pension replacement rates were scored, according to the group.

How Finland could still improve

Mikko Kautto from the Finnish Centre for Pensions said Finland lags behind the Netherlands and Denmark in terms of sustainability.

“They have much larger pension assets than we do. In addition, the prefunding of pensions there is much more extensive than in Finland.”

The report pointed out that Finland could raise its pension ranking by increasing minimum pension levels, strengthening the employment rate among older people and boosting the prefunding of pension assets.

“Minimum pensions have been falling in recent years following index cuts. And even though the employment rate for the over-60-year-olds has been rising, there is still room for improvement in this area too,” Kautto added.

Sweden ranked fifth and Norway sixth in the survey, while Argentina, Japan and India attained the lowest scores.

Related stories from around the North:

Canada: Educated aboriginal women have better employment outcomes than non-aboriginal women: study, Radio Canada International

Finland: Finnish government survives confidence vote on bill weakening job security, YLE News

Iceland: 10% of Iceland’s workforce employed in tourism, The Independent Barents Observer

Russia: Russian government to raise retirement age by several years, The Independent Barents Observer

Sweden: Will Sweden scrap state pensions for thousands now living in Finland?, YLE News

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