A recent analysis by Mikael Kirkko-Jaakkola, the chief economist at the Taxpayers' Central Association, reveals that individuals earning €40,000 a year could retain €32,361 from a combined income of salary and pension, compared to €30,268 from salary alone. The difference arises from the varying taxes and contributions levied on pensions and salaries, along with a €1,200 increase in the earned income deduction for those aged over 65, effective from 2024. This suggests that pursuing a partial old-age pension (OVE) can be a more financially sound decision this year.

The concept of partial early old-age pension allows individuals to access 25% or 50% of their pension as early as three years before reaching retirement age. This option could particularly benefit those who have the flexibility to supplement their income with a partial pension while continuing to work. For many, this means not only increased financial security but also the ability to enjoy the benefits of retirement without completely departing from the workforce.

As Finland's demographic landscape continues to evolve, discussions around pension reform and income support become increasingly relevant. The findings from these calculations emphasize the need to consider hybrid income sources as viable alternatives. Policymakers may need to look into these findings as potential ways to encourage older citizens to remain economically active while securely transitioning to retirement, potentially shaping future pension policies to create better outcomes for all parties involved.