Pension Expenditure Forecast for 2018

The earnings-related pension expenditure will grow by 3.2 per cent to 27.9 billion euros.

The table below presents a summary of the projected pension expenditure in 2018.

2018 2017 Change
earnings-related pensions
17 549 17 016 3.1%
– Basic provision 17 345 16 809 3.2%
– Supplementary provision 204 207 -1.4%
earnings-related pensions
10 169 9 864 3.1%
Unsalaried periods 180 153 17.6%
Total earnings-related
pension expenditure
27 898 27 033 3.2%

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 unsalaried 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 unsalaried period refers to a period during which pension accrues based on a social benefit that one gets rather than on earnings.

In the forecast, the earnings-related pension expenditure has been divided into a basic and a 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.