Finland proposes raising retirement age to 70

The Ministry of Finance of Finland presented a draft reform of social security, including raising the lower retirement age to 70 years. The measure involves a gradual increase in the retirement threshold by six months for each subsequent age group. According to estimates of the Ministry, this can increase the number of working citizens in the labor market from 50 thousand to 120 thousand people, according to the broadcaster Yle.

At the heart of the reform is a desire to halt the growth of public debt, which has increased from 75% over the past five years to a record 90.3% of GDP, and to strengthen the foundations of the welfare state. To do this, the Ministry of Finance proposes not only to increase the retirement age, but also to conduct a large-scale reduction in spending in the social sphere, health care and education, as well as to reduce the number of municipalities, which promises savings of about € 220 million.

In addition, the project mentions the abolition or reduction of child care benefits at home, which could bring an additional 10,000 people to the labor market. It is proposed to revise the list of state-paid medical services and benefits, including subsidies and tax preferences for business.

The report “Trust in the Future”, presented by the Ministry of Finance, emphasizes that the measures are aimed at stimulating long-term economic growth and improving the state budget balance by 8-€11 billion. However, the approval of the reform is not yet in question: the proposals will become the basis for the program of the next government after the parliamentary elections.