1. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Aging workforce – Opportunities and
challenges in Finland
Prof. Heikki Savolainen

2. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Origins of the Finnish Programmes
 Economic downturn in the early 90´s
 Extensive use of early retirement as a tool to cut cost and
to avoid redundancy-related unemployment
 Diminishing age cohorts born late 60´s early 70´s
 Large retirement rates of the postwar age classes after
2010

3. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Aging worker programme
 Promulgation following the work of a dedicated interministerial
committee for 1998-2001
 Main approaches:
- partial retirement reforms
- educating the public on the prospects
- development projects and good pract-
ices to maintain 55+ year-old in work
 Research projects on work ability and economic impact

4. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Conduct
 Ad hoc team from ministries of social affairs and health, of
labour and of education
 High level steering committee from the same and with
social partners
 Coordinated country-wide development projects
 Information by regional meetings, media and consultant
network

5. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Results
 Average retirement age increased
 Better appreciation of the skills and expertise of the 55+
year-old
 Work ability concept accepted as a good general tool
 Very good coordination of the operative efforts of the three
participating ministries

6. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Convincing figures
Employment (%)
Women
Age 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
50-54 75,5 77,7 78,7 79,2 80,4 80,0 80,8 81,4 81,0 82,3
55-59 49,1 50,7 55,6 59,8 63,7 65,7 66,4 66,7 66,7 69,0
60-64 16,3 16,7 20,0 20,3 22,2 23,4 23,7 27,2 30,7 35,1
Men
Age 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
50-54 73,5 76,6 78,2 79,5 80,0 79,1 78,1 77,9 79,8 79,6
55-59 50,5 51,6 54,7 58,7 62,0 64,6 64,9 64,6 63,0 65,7
60-64 22,8 22,8 23,2 26,7 28,3 28,7 31,2 31,3 35,4 39,5

7. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Well being at work programme
 Conceived as a continuation of the earlier programme for
2001-2003
 A stake-holder approach reached through workplace level
development projects
 Research programme on time budgeting by 45 + year-old,
annual personnel reporting and on the health needs of a
cohort born 1966

8. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Added value
 Knowledge capital of the previous programme maintained
 Better acceptance of diversity of the human resource at the
workplace
 Employees more aware of the motivational and supporting
aspects of their occupation

9. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Work attraction programme for 2003-2007
 Shortening work careers realized as an increasing danger
 Retirement legislation in need of a reform
 Occupational absences, accidents and disease still a
menace
 Increased rates of incapacity pensions due to
musculoskeletal and depressive disorders

10. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Massive concerted efforts with four pillars
 Theme 1: Safe and health-supporting work
conditions
 Theme 2: Efficient occupational health and
rehabilitation services
 Theme 3: Equal opportunities for all at
work
 Theme 4: Flexible retirement rules and legislation

11. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Task force of three ministries and social
partners
 Large consensus acquired through participation
 Efficient work shows results:
- retirement reform accomplished
- average retirement ages on the increase
- new methods in rehabilitation and
occupational health care tested
- legislation on equal treatment of all at work

12. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Perseverance pays off
 Three consecutive governments have consistently focussed
on the issue of population aging, employment and health
 The three programmes represent evolutionary steps
conserving the acquis of the earlier effort
 No immediate miracles possible while attitude changes are
indispensable and form base of the development

13. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Expected retirement age 2000 - 2006
Age
60
59,5
59
58,5
All
58
Retirement
reform
57,5 50 to 64-year-old
57
2000 2001 2002 2003 2004 2005 2006

14. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
International recognition
 The Finnish programme was given the Bertelsmann prize
in 2006
 Some innovations have been adopted by European partners
(e.g. the Work Ability Index, WAI)
 OECD working groups have used the Finnish expertise
and experience

15. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Pension-age expectancy for 50 year-olds
62,5
62,0
61,5
Men
61,0
Women
Men - target
60,5
Women - target
60,0
59,5
1996
1998
2000
2004
2006
2008
2010
2002
Source: Finnish Centre for Pensions

16. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Reimbursed sickness daily allowances by disease
Thousand sickness daily allowances
3500 Diseases of musculo-
sceletal system and
3000 connective tissue
Mental and behavioural
disorders
2500
Injuries, poisoning and
certain other external
2000 causes
Diseases of circulatory
system
1500
Diseases of nervous
system
1000
Tumours
500
Other reasons
0
1995 - men 2006 - men 1995 - women 2006 - women
Source: Social Insurance Institution of Finland

17. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
A broad approach to well-being at
work
 Somatic, mental and social well-being at work
 Safety and health at work
 Occupational hygiene
 The functioning of work organisations and work
communities
 Skills and competence; command of work
 Balancing work and life
 The attractiveness of working life
 Good quality work and productivity

18. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Leading principles of the Forum
 The Forum provides a sound and honest platform for a broad
participation.
 Interaction between workplaces and experts.
 Any organisation who works for well-being at work may participate
in the Forum according to their needs and aspirations.
 The Forum utilizes the knowledge and good practises developed in
the previous work life programmes.
 Interaction with international partners, and dissemination of this
information to the Forum members and public.
 The Forum is one module in the Government policy programme on
employment, entrepreneurship and work life.

19. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
Challenges and opportunities for
improvements
 Improving productivity and the quality of work
simultaneously
 Integrating well-being at work in other areas of
society by effective networking
 Dissemination of good practices at the workplace
level

20. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
The main themes of the Forum
 Dissemination of good practices
 Balancing (managing) work load and stress at
work
 Safety at work
 Occupational health care practices
 A coordinator and a working group for each theme
 Several operative activities within each theme
 New themes can be started and existing ones modified
or accomplished according to the needs of the society
and stake holders.

21. MINISTRY OF
SOCIAL AFFAIRS AND HEALTH
National economy benefits
 Increase in retirement age from 65 to 68 augments
spending power by 10 %
 Period of retirement will shorten 9.2 months on the
average
 Benefit spending increases smaller
(NZZ, Feb, 18, 2009)