Finnish Finance Ministry proposes to raise retirement age to 70
The Finnish Ministry of Finance has proposed gradually raising the retirement age to 70.
The Finnish Ministry of Finance has proposed gradually raising the retirement age to 70. This is stated in the report “Trust in the future”, published on the website of the Ministry on October 7.
According to the project, the retirement age will be increased by six months for each subsequent age group. The Ministry estimated that this will increase the number of workers by 50-120 thousand. The Finance Ministry also intends to stop the increase in public debt, which over the past five years has grown from 75 to 90.3% of GDP.
The reform plan also includes spending cuts in social welfare, health care and education, and a reduction in the number of municipalities, which will bring savings of €220 million. The authors of the report also propose to reduce child care benefits at home, which can additionally bring about 10 thousand people to the labor market. The Ministry plans to revise the list of paid medical services and benefits for business.
Earlier, the head of the Coalition Party, Prime Minister of Finland Petteri Orpo presented an economic program that provides for curbing the growth of public debt by reducing spending. At the same time, the project offers new spending of €1 billion. Net savings will be €8 billion.
The biggest cuts will affect social and health services and the pension system - €2 billion each. Another €1.5 billion the party proposes to save on indexed costs, €500 million on social protection and €600 million on business subsidies.
While there is no question of approving the reform, the proposals will form the basis for the program of the next government after the parliamentary elections. Lauri Kayanoja, economic policy coordinator, said: “The task of adjusting public finances is now so large that it will inevitably affect the daily lives of many Finns.”.
