An unemployed person who has reached the age of 59 prior to the end of the unemployment benefit period of 500 days may continue to receive jobless allowances until he or she turns 60. After this, the person qualifies for unemployment pension.
Over the past few years, the number of unemployed people on the pathway to early retirement has been cut in half. Fresh figures reveal that last year only some 15,000 jobless persons took advantage of this grace period, compared to 21,000 two years ago.
Heikki Pohja of the Unemployment Insurance Fund says the small number of people receiving extended unemployment allowances is a real money saver. However the fund fears that this good spell will be short-lived. Older workers who lost their jobs during the recession won't surface until they have been unemployed for 500 days. Pohja says he expects to see a rush of applications for early retirement as the year draws to a close.
