A3 Refereed book chapter or chapter in a compilation book

Pension reforms beyond social investment: do social investment and intervention layers exist in Finland's pension system?




AuthorsIlmakunnas, Ilari; Ollonqvist, Joonas; Moisio, Pasi

EditorsErola, Jani; Moisio, Pasi; Peltoniemi, Johanna

PublisherEdward Elgar Publishing

Publication year2026

Book title Beyond the Nordic Welfare State : Extending Social Investments with Interventions

First page 253

Last page264

ISBN978-1-03537-543-1

eISBN978-1-03537-544-8

DOIhttps://doi.org/10.4337/9781035375448.00023

Publication's open availability at the time of reportingOpen Access

Publication channel's open availability Open Access publication channel

Web address https://doi.org/10.4337/9781035375448.00023

Self-archived copy’s web addresshttps://research.utu.fi/converis/portal/detail/Publication/523616541

Self-archived copy's licenceCC BY NC ND

Self-archived copy's versionPublisher`s PDF


Abstract

Pensions represent a cornerstone of income security in the Nordic welfare state. This chapter analyses the major Finnish pension reforms of 2005, 2017, and the reform negotiated in 2025, and shows how these pension reforms have increasingly incorporated elements of the social investment paradigm. The 2005 and 2017 reforms introduced flexible retirement ages, life expectancy adjustments, and accrual incentives designed to extend working lives, thereby embedding investment-oriented incentives into the system. However, interventionist features remain limited, with only selective measures such as the years-of-service pension for physically demanding occupations. The 2025 reform shifts the focus towards fiscal stabilisation, introducing technical mechanisms rather than behavioural incentives. Overall, Finnish pensions illustrate how an earnings-related, corporatist system can integrate elements of social investment without fundamentally departing from its role as long-term income security.


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Last updated on 29/05/2026 11:42:29 AM