Majority Finns not financially ready for retirement life

Finns dream of more leisure time and travel after retirement, but less than half have prepared financially for life after work, according to a survey conducted by OP Life Insurance Company.

However, young people, in particular, view saving for retirement as important, said OP in a press release on Tuesday.

The Company asked people in Finland about their retirement dreams. Of around 1,500 respondents, 79 per cent dream of more leisure time. 60 per cent wish for good health, while 58 per cent look forward to travelling.

Despite this, surprisingly few Finns prepare for retirement. When asked whether they had prepared financially for retirement, 54 per cent of those surveyed said no. Among younger respondents aged between 17 and 24, as many as 72 per cent said they had not yet done so.

“For young people just starting out in their careers, retirement seems far off in the future. Starting to save for retirement early enables long-term accumulation of returns”, said Sari Heinonen, CEO of the Company.

Younger respondents take preparing for retirement more seriously than other age groups, even if they have not yet begun to do so.

Among respondents aged between 17 and 34, as many as 80 per cent consider preparing financially as somewhat or very important, compared to 72 per cent of all respondents.

“No one knows when today’s young people will be able to retire, and what their pensions will be like, but the responses suggest that this is on their minds,” said Heinonen.

Of those who are preparing for retirement financially, 57 per cent invest in funds, about 46 per cent said they invest directly in stocks, while 42 per cent are building up savings in a bank account.

“Just over a quarter of those surveyed also said they invested in real estate or insurance savings products. It’s great to see that so many people are familiar with different saving methods. During the Covid-19 pandemic, people in Finland have accrued more savings than normal, and many seem to be doing more to prepare for the future,” Heinonen added.