04.11.2022, Helsinki.
Indexation of retired pay in Finland in 2023 is expected to be 6.8%, the Managing Director of Finnish Centre for Pensions Mikko Kautto said on November 4 in an interview with TV and radio company YLE.
This is a record increase in pensions since the late 1980s. According to the official, such an increase should not be taken too cheerfully, as it is caused by record inflation in the country.
“Because wages are now rising more slowly than pensions, this means that next year average pensions will be higher than ever before compared to average wages,” Kautto said. “Next year could be a historical turning point, because then the level of pensions in relation to average earnings will decrease.”
Inflation in EU member-countries, especially in Finland is associated with the sanction imposed on oil and gas supplies from Russia. Finland has experienced one of the worst energy crises, as it receives a critically high percentage of oil and gas from neighboring Russia. After the rejection to import Russian oil, gas and electricity, the household costs of Finland’s residents increased significantly, and official annual inflation reached 8.1%.
Source: Rossa Primavera News Agency
