Opinions on Pension Policy Principles in Finland in 1994 and 2016
Abstract
The underpinning theme of this article is the relationship between institutional change and changes in public opinion on how pension security should be organized. The Finnish national pension (NP) system has been reformed several times since 1994. In 1994, all pensioners received a universal flat-rate basic amount. On top of that, an income-tested supplement was paid to those who had no or only a small earnings-related pension.
The article is based on two opinion surveys conducted in 1994 (1,469 respondents) and 2016 (2,880 respondents). There were two main sets of questions: 1) how should pension security be organized: no legislative pensions, but private insurance policies taken out by individuals; pension schemes based on means-testing; or universal pensions for everyone; and 2) how should pension amounts be determined: flat-rate benefits; based
on years of employment; based on pension contributions paid; or based on previous income.
Our main interest is in how institutional changes are reflected in public opinion on pension policy. The single biggest institutional change in NP since 1994 has been the discontinuation of the universal basic amount. Our working hypothesis was that if institutions shape public opinion, then this institutional change should be reflected in opinions on universalism. Indeed, public support for the principle of universalism has decreased
from 76 per cent in 1994 to 33 per cent in 2016. Other institutional changes have been less significant, and therefore opinions on these issues have remained rather stable over the years. The respondents were against the idea of individuals assuming responsibility for their pension security (close to 90%), and in favour of tying pension amounts to the number of years in employment and the amount of pension contributions paid (about 70%). Interestingly enough, only 42 per cent supported income-related pensions. Our tentative conclusion is that institutional changes gradually mould
public opinion.
Auhors
Ilpo Airio, Olli Kangas
Additional Information
- Peer-Reviewed: yes.
- Open Access: yes.
- Cite as: Airio, I., & Kangas, O. (2017). Mielipiteet eläkkeiden järjestämistavoista ja määräytymisperiaatteista Suomessa vuosina 1994 ja 2016. Yhteiskuntapolitiikka, 82(6), 617–629. https://urn.fi/URN:NBN:fi-fe2017121455848
