Pension Expenditure Forecast for 2017

The earnings-related pension expenditure will grow by an ample 4 per cent to EUR 27 billion.

The table below presents a summary of the projected pension expenditure in 2017.

2017 2016 Change
Private-sector
earnings-related pensions
17 006 16 371 3.9%
– Basic provision 16 801 16 160 4.0%
– Supplementary provision 205 211 -2.8%
Public-sector
earnings-related pensions
9 908 9 510 4.2%
Unpaid periods 154 129 19.4%
Total earnings-related
pension expenditure
27 068 26 010 4.1%

Earnings-related pension expenditure forecast

The annually published earnings-related pension expenditure forecast includes projections of the ongoing year per sector (private and public sectors and unpaid periods). As for the private sector, the forecast includes projections also per pension type (old-age, disability, part-time and survivors’ pensions) and pension act (Employees Pensions Acts, Seafarer’s Pensions Act, Self-employed Persons’ Pensions Act, Farmers’ Pensions Act).

The unpaid period refers to a period during which pension accrues, but not based on earnings but on some received social benefit.

In the forecast, the earnings-related pension expenditure has been divided into the basic and the supplementary provision. The basic provision has been specified by pension type and pension act. The supplementary pension has been specified only by pension act.

When compiling the forecast, the available data is of the first half of the year. The underlying assumption is that the percentual change in the number of year-end recipients of earnings-related pensions compared to the situation at the year-end in the previous year is the same as the percentual change at mid-year of the ongoing year compared to the mid-year of the previous year.