The effect of COVID-pandemic on retirement timing and interest to work alongside pension in Finland

BACKGROUND: The health risks of COVID-pandemic may have made retirement more desirable for those close to the retirement age. At the same time, wide lockdowns may also have emphasized the importance of maintaining social contacts at work. This study examines if the COVID-pandemic reflected to retirement timing and to the interest to work after that in Finland. METHODS: We use register-supplemented survey data (3,350 observations, response rate 68%) of Finnish pensioners who retired from work to old-age pension in years 2019-2021. We use descriptive analysis and logistic regression models to describe the prevalence of the pandemic's impact and to find out if the effects on retirement and interest to work after retirement vary by population groups. RESULTS: According to preliminary results, for majority (85 %) the pandemic had no effect on their re-tirement decision. However, seven per cent of respondents told the pandemic made them retire earlier, while two per cent postponed retirement. Advancing retirement was more common among high-educated, upper-level employees and those who had retired after statutory retirement age. Three quarters of recently retired Finns told COVID-pandemic had no effect on interest to work after retirement. Ten per cent told the pandemic decreased and four per cent that the pandemic increased their interest to work. Women, upper-level employees and high-educated reported more often their interest to work had decreased because of the pandemic. CONCLUSIONS: From both a societal and individual point of view, it is important to notice how widely the pandemic affected the retirement timing and the interest to participate in working life at the end of the working career. Our results suggest that while for a great majority the pandemic did not have any impact on their retirement decisions or interest to work after retirement, there were small groups of retirees whose retirement timing and working interest were affected. KEY MESSAGES: • For the great majority of Finns retiring from work in 2019–2021, the COVID pandemic did not affect retirement timing or their interest to work alongside old-age pension. • For some, the pandemic affected their retirement timing and interest to work, more often by inducing earlier retirement and decreasing interest to work.