Earnings-related Pension Recipients in Finland

Earnings-related pension recipients in Finland

Producer: Finnish Centre for Pensions
Website: Earnings-related pension recipients
Subject area: Social security
Part of the Official Statistics of Finland (OSF): Yes

Description

The statistics offers a general overview of all earnings-related pension recipients in Finland.

Data content

The statistics includes central data on all earnings-related pension recipients, new retirees on an earnings-related pension and the earnings-related pension expenditure in Finland.

Categorizations

private and public sector, pension benefit, gender and age, pension amount, disease classification ICD-10; regional classification: municipality, province, country of residence

Methods of data collection and source

The data on earnings-related pension recipients, new retirees and earnings-related pension expenditure are based on the pension register.

The regional data presented in the statistics are based on the population data of the Social Insurance Institution of Finland, supplemented with data on earnings-related pensions taxable at source and paid abroad, as reported by the pension providers.

Update frequency

The more restricted statistics Earnings-related Pension Recipients in Finland is released once a month. The more comprehensive statistics Pensioners in Finland is released once a year.

Time of completion or release
The monthly statistics is released by the middle of the following month and the annual statistics in the autumn of the year following the statistical year. For a more detailed schedule, consult the Release Calendar.

Time series

The statistics has been produced since 1996. In 2005-2013, the statistics was published under the name Pensioners and Insured in Finland.

The Quality Description of the statistics (section “Coherence and comparability of data”) includes more detailed information on the comparability of the time series.

Key words

Social insurance, pension, earnings-related pension, old-age pension, disability pension, disability pension, unemployment pension, farmers’ special pension, part-time pension, partial old-age pension, retirement

Age

In the tables on persons having retired on an earnings-related pension, the age used is the age at the start of the pension. In other tables it is the age at the end of the statistical year.

The average age is the arithmetic mean of the ages. For recipients of an earnings-related pension the age is calculated from the age at the end of the statistical year, and for persons who have retired on an earnings-related pension, from the age when the pension starts.

The median age is the age for the middle-most observation in the data.

Disability pension incidence rate

The share of new retirees on a disability pension in one year as per mille of the pension-insured population.

Age-standardisation and non-age standardisation is used when calculating the incidence rate. The standard population used in age standardisation is the number of insured persons in 2012 or the most recent statistical year. Standardisation is used to remove the effects of changes in the population’s age structure on the incidence rate.

The age used in the statistics is the person’s age at the end of the statistical year.

Disability pensions include ordinary disability pensions: years-of-service pensions as of the year 2018 and individual early pensions up to the year 2012.

Before 2018, disability pensions were granted only to person under age 63. That is why the incidence rates have been specified by age groups. In the long run, however, the most comparable age group is the 25–62-year-olds. Since the retirement age for the old-age pension continues to rise, disability pensions are granted to increasingly older persons. That is why the age classification used in the statistics must be amended in the future.

Domicile, country of residence, county

The domicile of a person is seen to be the domicile on the last day of the year. For pensions paid abroad, the country of residence is the country of residence on the last day of the statistical year.

Countries of residence are categorized according to the country categorization valid at the end of the statistical year. Counties are classified according to the regional classification in force at the end of the statistical year.

Earnings-related pension expenditure

Earnings-related pension expenditure includes all statutory pensions from the private and public sector paid during the statistical year, as well as voluntary, registered supplementary pensions paid by the employer, but not pensions paid by the municipalities according to the old local government regulations.

Main cause of incapacity

By main cause of incapacity to work is meant the main disease which is the basis of the pension. Although the reason for the disability may sometimes be a significant secondary disease in addition to the main disease, statistics are based solely on the classification of main diseases.

Since 1996, the diagnoses and the corresponding codes are based on the ICD 10 classification of diseases. Disability pensions granted before 1996 are based on the previous ICD 9 classification. The classification is primarily carried out according to the new classification of diseases. The codes according to the old classification have been as closely as possible placed in the correct category in the new classification.

New retiree on an earnings-related pension

New retirees receiving a pension based on their own work history are persons whose pension based on their own working career (old-age, disability or special farmer’s pension) has begun during the statistical year. A further requirement is that the new retiree has not received any pension of the aforementioned types for at least two years.

A scheme-based review is always carried out for the scheme in question. If a person has retired from another sector already prior to the statistical year, and is retiring from another sector during the statistical year, he or she is only registered in the latter sector for the statistical year, no longer in the figure of all who have retired. In other words, a person is only entered in figures relating to the whole earnings-related pension scheme in the statistical year during which the first pension begins. The scheme-specific figures of the tables can thus not be added together.

Persons having retired on an old-age pension are persons whose old-age pension started in the statistical year and who have not received a pension of any type in their own right for at least two years. As regards disability pensions and special pensions for farmers, the precondition is that the persons have not received a pension of this type for two years. As regards the different types of disability pension, the precondition is that the persons have not received a disability pension of any type for two years.

Persons retiring on a part-time pension are not considered as all persons having retired on an earnings-related pension. Persons receiving a part-time pension are not included in the figures until the year when their pension is converted to some other pension based on their own work history, usually an old-age pension.

The partial old-age pension, introduced in 2017, is processed in the same way in the statistics as the part-time pension. That means that persons who have retired on a partial old-age pension are not considered new retirees.

Pension benefit

The pension benefits in the earnings-related pension scheme are old-age, disability, special farmer’s, part-time, partial old-age and survivors’ pensions. More detailed information about pension types relating to the statistical year (for example basis for granting and age limits) has been presented in the figures for each statistical year in chapter 1.3 Pension benefits.

Pension sector

Recipients of an earnings-related pension are always included in the sector from which he or she receives at least one pension under survey. If a person receives a pension from both sectors, he or she is included in the figures for both sectors, but only once in the figures for the whole earnings-related pension scheme.

Persons who have retired on an earnings-related pension are registered in the sector-specific numbers, if retirement from the sector in question occurs in the statistical year. A person is registered in the numbers for the whole earnings-related pension scheme only once, in the statistical year during which the first pension begins.

Recipient of an earnings-related pension

Persons receiving a pension based on their own work history are those receiving old-age, disability, unemployment, special farmer’s, part-time or partial old-age pension during the last days of the statistical year. All recipients of earnings-related pension includes the aforementioned as well as recipients of survivors’ pensions. The earnings-related pension may be paid simultaneously with several different pension acts and types of pensions.

Size of the earnings-related pension

All monetary amounts given in the statistics are gross monthly pensions. Pension integration may have the effect of reducing an earnings-related pension if a person receives a pension under acts covering specific risks (Motor Liability Insurance Act, Occupational Accidents, Injuries and Diseases Act, Act on Compensation for Military Accidents and Service-Related Illnesses, Act on Compensation for Accidents and Service-Related Illnesses in Crisis Management Duties, Military Injuries Act). The reduction is made to the accrued earnings-related pension. These benefits may be so high that only a small amount or no earnings-related pension is paid out.

The earnings-related pensions of pension recipients and persons who have retired on earnings-related pensions include the euro amounts from both sectors of all pensions based on their work history and which were in payment at the end of the statistical year: old-age, disability, unemployment and farmers’ special pensions. The pensions include the euro amounts of both basic pensions and registered supplementary pensions. If the pensions of new retirees in the statistical year have ended before the end of the statistical year, the pensions include the amounts of all earnings-related pensions in payment when the pension ended.

Recipients of part-time pensions do not simultaneously receive other earnings-related pensions based on their work history. Therefore, the earnings-related pensions of those who receive and those who have retired on a part-time pension include the euro amounts of the part-time pension only.

In addition to the above, the total earnings-related pension includes any survivors’ pension that the pension recipients may receive. The total earnings-related pension is not calculated for those who have retired on an earnings-related pension.

The average earnings-related and total earnings-related pensions are arithmetic means. Tables 5 and 16 also show the median pension. The median
pension is the pension observed at the mid-point of the material, i.e. half of the pension recipients receive a pension that is lower than the median and half receive a pension that is higher.

Social security agreement

An agreement between two countries that regulates the social security of individuals who are mobile between these countries.

Social security internationally (Ministry of Social Affairs and Health)

Unpaid period

Period for which a person receives a social security benefit for which pension accrues. Unpaid periods are, for instance, periods of parental allowances, periods of sickness allowance and unemployment allowance.

1. Contact

1.1 Contact organisation

The Finnish Centre for Pensions

1.2 Contact organisation unit

Planning Department

1.3 Contact name

Joonas Hautamäki
Jari Kannisto

1.4 Contact person function

Statistical expert

1.5 Contact mail address

The Finnish Centre for Pensions
FI-00065 ELAKETURVAKESKUS
Finland

1.6 Contact email address

firstname.lastname@etk.fi
Contact form

1.7 Contact phone number

+358 29 411 20

1.8 Contact fax number

Fax: +358 9 148 1172

2. Metadata update

2.1. Metadata last certified

26 June 2024

2.2. Metadata last posted

26 June 2024

2.3. Metadata last update

26 June 2024

3. Statistical presentation

3.1. Data description

The statistics depict the number of and average pensions of persons who have received and who have retired with an earnings-related pension.

3.2. Classification system

Private and public sector; pension benefit; size of pension; gender and age of pension recipient; classification of diseases ICD-10; regional classification: municipality, region, wellbeing services county and country of residence.

3.3. Sector coverage

The statistics covers all statutory pensions paid from the Finnish earnings-related pension system.

3.4. Statistical concepts and definitions

The concepts and definitions have been presented on the statistics page.

3.5. Statistical unit

Person / pension recipient.

3.6. Statistical population

Persons receiving a pension from the Finnish earnings-related pension system.

3.7. Reference area

Municipality, province, wellbeing services county and country of residence.

3.8. Time coverage

The statistics have been produced since 1996. As for the number of recipients of an earnings-related pension, the time series extends to 1981.

4. Unit of measure

Number of persons.
Pension amount: €/month (gross pension).
Population share: % of population insured by Kela for social security benefits.
Disabiltiy pension incidence: ‰ of population insured for earnings-related pensions.

5. Reference period

For pension recipients, the last day of the statistical month and year. For new pensioners, the calendar month and year.

6. Institutional mandate

6.1. Legal acts and other agreements

The Act on the Finnish Centre for Pensions states that one of the responsibilities of the institution is to compile statistics in its field of operations.

6.2. Data sharing

The statistical data is delivered annually to the Finnish Institute for Health and Welfare (THL) for the statistics of the European system of integrated social protection statistics (ESSPROS).

7. Confidentiality

7.1. Confidentiality – policy

The Finnish Centre for Pensions is committed to data protection as a fundamental principle of statistics, which ensures confidential processing of data.

7.2. Confidentiality – data treatment

Data is protected by the necessary physical and technical solutions at the various stages of processing. Personnel have access only to the data necessary for their work. Third parties do not have access to the premises where the data is processed. Employees are required to sign a confidentiality agreement when they are hired.

8. Release Policy

The statistics of the Finnish Centre for Pensions are released on weekdays at 9.00 a.m. on the website of the Finnish Centre for Pensions. Any exceptions to the release time are announced separately.

The data in the statistical database are released as open data. The database’s open interface can be freely used under the CC BY 4.0 licence, with the Finnish Centre for Pensions being cited as the source of the statistical data.

8.1. Release Calendar

The release dates of the statistics are published in the release calendar. The release calendar for the following year is published towards the end of the year.

8.2. Release calendar access

Release Calendar

8.3. User access

The statistics are available to everyone when they are published on the website of the Finnish Centre for Pensions at a previously announced date.

Embargo policy: Media that are bound by the journalist’s guidelines may request material from the Finnish Centre for Pensions’ Communications Department.

Communication Department’s contact information

9. Frequency of dissemination

The monhtly data of the statistics are released after mid-month of the month following the statistical month.

Special data of disability pensions are released in March.

Annual data on earnings-related pension recipients are released in March.

Preliminary data on the number of new pensioners with earnings-related pensions are released in February. The final data on new pensioners is released in June.

A separate statistical publication is released each year in June.

10. Accessibility and clarity

10.1. News release

The releases of the statistics can be found in the shared open repository Julkari: Earnings-related pension recipients in Finland (Julkari)

Press releases on this topic can be found online at the website of the statistics.

10.2. Publications

Earnings-related Pension Recipients in Finland: monthly statistic
Earnings-related pension recipients in Finland (Julkari)

10.3. Online database

The monthly statistics on earnings-related pension recipients (PxWeb)
Number of earnings-related pension recipients (PxWeb)
Number of new retirees on earnings-related pension (PxWeb)
Size of earnings-related pension recipients’ pension (PxWeb)
Size of pension of new retirees on earnings-related pension (PxWeb)
Disability pension incidence rate (PxWeb)
Recipients of earnings-related pension living abroad (PxWeb)

10.4. Microdata access

The Finnish Centre for Pensions’ registry data can be requested for scientific research use.

Pension register data and Earnings and Accrual Register data on employment covered by earnings-related pension insurance can be used for research purposes in accordance with the Publicity Act, Data Protection Act, and the Act on the Secondary Use of Health and Social Data (hereinafter Act on Secondary Use), even though individual-level data is confidential. The research must be individualized and scientific and based  on a research plan. Register data are not disclosed for commercial purposes.

Apply for research access to register data of the Finnish Centre for Pensions

11. Quality Management

11.1. Quality assurance

The Finnish Centre for Pensions is committed to the quality principles of Official Statistics of Finland. Its statistical production follows the quality criteria of Official Statistics of Finland, which are compatible with the European Statistics Code of Practice.

11.2. Quality assessment

The quality of statistics is assessed at several stages in the statistical process.

12. Relevance

12.1. User needs

Feedback from users is gathered through customer surveys. Feedback is also collected through direct contact. The feedback received is monitored and taken into account in the development of the statistics.

13. Accuracy and reliability

13.1. Overall accuracy

The data are based on administrative registers. The source data are at individual level and used for the payment of pensions.

13.2. Sampling error

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13.3. Non-sampling error

The register data are extracted at the beginning of the year, when some of the retroactive pension decisions may be missing from the statistical data.

14. Timeliness and punctuality

14.1. Timeliness

The monthly data of the statistics are released after mid-month of the month following the statistical month.

The annual data are compiled in several parts which are published in five separate releases following the quality inspection of the data.

The first part is released in February and the last part in June following the statistical year.

15. Coherence and comparability

15.1. Comparability – geographical

The regional classification (municipalities, counties, wellbeing services counties) in force in each statistical year is used in the statistics.

15.2. Comparability – over time

This statistical publication has been produced since 1996. Its time series are mainly comparable from that date. As for the number of earnings-related pension recipients, the time series extends back to the year 1981.

In 2005—2013, the statistics was published under the name Pensioners and Insured in Finland (Official Statistics of Finland). As of the statistical year 2014, the data is published in two different statistical publications: Earnings-related pension recipients in Finland (OSF) and Persons insured for an earnings-related pension in Finland (OSF).

In 1999, the concept of new retirees was changed. It no longer includes persons retiring on a part-time pension. They are included in the figures for new retirees when they start to receive some other pension that is based on their own working life, usually an old-age pension.

The partial old-age pension, introduced in 2017, is processed in the same way in the statistics as the part-time pension. That means that persons who retired on a partial old-age pension in 2020 are not considered new retirees.

As of the statistical year 2020, survivors’ pensions (the surviving spouse’s pension and orphan’s pension) that amount to 0 euro are no longer included in figures of the annual statistics. In the monthly statistics, the change is made as of the beginning of the statistical year 2021. This change affects the number of recipients of survivors’ pensions and the average pension level.

The amount of the paid survivors’ pensions is affected by the surviving spouse’s own earnings-related pension (or calculated accrued pension) and benefits paid based on motor liability and accident insurance. Taking them into consideration may lead to a survivors’ pension of 0 euro.

Changes in earnings-related pension legislation must be considered when interpreting the statistics:
Year-by-year changes in earnings-related pension legislation

15.3. Coherence – cross domain

Differences in the definition of concepts may make comparisons with other statistics of the same statistical region difficult.

These statistics include only statutory earnings-related pensions, which exclude, for example, voluntry supplementary pension insurances.

15.3.1. Coherence – sub annual and annual statistics

The data on the earnings-related pension system are mainly coherent between the monthly and annual statistics. Due to the differences in the date of extraction of the data, some of the pension data may become more accurate in the course of the year.

15.4. Coherence – internal

The data of the statistics are coherent with the data in the joint statistics of the Finnish Centre for Pensions and Kela (Statistics on Pensioners in Finland).

Statistics on Pensioners in Finland

16. Cost and burden

The production of the statistics is financed annually by the Finnish Centre for Pensions.

17. Data Revision

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18. Statistical processing

18.1. Source data

The statistics are based on the registers of the Finnish Centre for Pensions.

18.2. Frequency of data collection

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18.3. Data collection

Administrative registers.

18.4. Data validation

Adjustments are made at different stages of statistical production in accordance with the production processes of the Finnish Centre for Pensions. In addition, the results are compared with changes in legislation and with data from previous statistical years.

18.5. Data compilation

Individual-level pension data are extracted from the pension register. They are used to generate aggregate data and statistical tables.

Changes in earnings-related and national pension laws