More than 1.4 million people who live in Finland get a pension in their own right. The number has grown by one third since 1990. At the same time, the earnings-related pension expenditure has tripled. In 2016, a total of 26 billion euros was paid in earnings-related pension and 2.5 billion euros in Kela pensions.
At year-end 2016, a total of 1,559,000 persons got a pension. Roughly 80 per cent got an old-age pension, 14 per cent a disability pension and 16 per cent a survivors’ pension (note that one person can get several pension types at the same time).
Of all pension recipients, 1,459,000 live in Finland. That counts for 33 per cent of the population aged 16 and over. The number of people getting a pension in their own right has grown by one third since 1990. At that time, 1,097,000 got a pension in their own right (28% of the total population).
Lats year, 76,000 persons living in Finland retired. Three out of four retired on an old-age pension and most of the other new retirees on a disability pension.
Earnings-related pension expenditure tripled since 1990
In 2016, a total of 28.5 billion euros were paid in pensions. Earnings-related pensions counted for 26 billion euros and Kela pensions for 2.5 billion euros.
Kela’s pension expenditure has been reduced by two fifths since 1990 as the number of national pension recipients has dropped significantly. At the same time, the earnings-related pension expenditure has nearly tripled. This is due to the growing number of retirees on an earnings-related pension, rising wages and longer working lives.
Fewer retirees on a disability pension
In the 1990s and the 2000s, the number of retirees on a disability pension was high. In 1990, roughly 300,000 people got a disability pension; in 2000, they numbered 262,000 and in 2010 around 259,000.
In recent years, the number of retirees on a disability pension has gone down clearly. At the end of 2016, a total of 211,000 got a disability pension.
“The positive trend has continued this year. At the same time, disability pensions are often granted as fixed-term cash rehabilitation benefits,” explains Tiina Palotie-Heino from the Finnish Centre for Pensions.
The number of new disability pensions have decreased among all other age groups than in that of the under-35-year-olds. At the end of 2016, they numbered 23,000. Slightly more than half of them were men.