Finland to raise retirement age

Representatives from the government, unions and pension funds of Finland have agreed to raise the retirement age from 63 to 65.

The negotiation over Finland's state pension system has lasted for weeks, and agreement on the retirement age was finally settled Thursday, Xinhua reported.

According to the proposed pension reform, Finnish employees both men and women born in or after 1955 will retire two years later than the current age of 63.

From 2017, the pensionable age will be gradually increased by three months every year.

This means that employees born in 1962 will be the first group who retire at the age of 65.

In addition, the proposal claimed that employees doing physically or mentally demanding works will have possibility to retire earlier, but their career will be no shorter than 38 years.

Finnish Prime Minister Alexander Stubb will evaluate the solution on the change of retirement age Friday.

After that, the Finnish ministry of social affairs and health will prepare a bill on the proposal, and submit it to the parliament.

Once the parliament approves it, the amendment will be brought into Finland's Employees Pension Act.