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The ageing of the population challenges the financing of pensions in the future. As a result, pension systems have been reformed in many countries. In addition to reforming the financing principles of pensions, an important aim for social policy has become the postponement of retirement. In Finland, pension reform came into force at the beginning of 2005, with the aim, through a variety of measures, of encouraging workers to stay on at work. Under the new system it is possible to retire flexibly between the ages of 63 and 68. This article, using extensive survey-data, examines the plans of Finnish wage and salary earners to continue working beyond the lowest pensionable age of 63. First of all, it examines whether older Finnish workers on the whole intend to continue working beyond the pensionable age and whether economic incentives increase their intention to go on working. Secondly it analyses the way in which different socio-demographic and socio-economic factors are related to plans to continue working. The results show that Finns take quite a reserved attitude towards remaining at work in spite of financial incentives. Moreover, those who plan to continue working are more likely to be male, to be highly educated, to be private sector workers in good health and to be individuals who live alone. Private pension arrangements and long work careers decrease willingness to continue at work. Activities relating to the treatment of older workers in the workplace as well as the demands of the job and the extent of control over work also affect plans to go on working. Managerial work, features of the job and job satisfaction are also important but less so than the aforementioned factors. All in all the results show that the aim of postponing retirement will be hard to achieve since most workers do not want to go on working and would rather retire as soon as possible.

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Objective: To examine whether downsizing, the reduction of personnel in organisations, is a predictor of increased risk of disability retirement among employees who kept their jobs. Design: Prospective cohort study. Based on reductions of personnel in participants' occupation and workplace, employees were grouped into exposure categories of no downsizing (less than 8% reduction), minor downsizing (reduction between 8% and 18%), and major downsizing (more than 18% reduction). They were followed up for a five year period after downsizing. Setting: Four towns in Finland. Participants: 19 273 municipal employees, aged 21-54 years. Main outcome measures: All permanent full disability pensions granted because of medical reasons below 55 years of age between 1 January 1994 and 31 December 1998 from the national registers. Results: In all, 223 employees were granted a permanent disability pension. The overall rate for disability pensions per 1000 employees was 7.7 after no downsizing, 13.1 after minor downsizing, and 14.9 after major downsizing. Cox proportional hazard models adjusted for age, sex, occupational status, type of employment contract, and town showed 1.81 (95% confidence intervals 1.22 to 2.70) times higher risk of disability retirement after major downsizing than after no downsizing. Conclusions: The immediate financial advantages of downsizing need to be considered in relation to increased occupational disability and the resulting extra costs to employers and society.