A more recent publication of this set of statistics is available: Statistics on Pensioners in Finland

Statistics on Pensioners in Finland

In 2010, a total of 23.2 billion euros were paid in pensions

In 2010, a total of 23.2 billion euros were paid in pensions. This was 42 per cent of social expenditure and 13 per cent of GDP. Statutory earnings-related pensions were paid to the amount of 19.5 billion euros and pensions paid by the Social Insurance Institution to the amount of 2.5 billion euros. Pensions from military injuries insurance, motor liability and workers’ compensation insurance  and  non-registered supplementary pensions  were paid together to the amount of 1.2 billion euros.

At the end of 2010 there were 1,464,000 pension recipients. Of them 1,178,000 received only a pension in their own right, 234,000 received a pension in their own right and a survivors’ pension and 51,000 received only a survivors’ pension. There were 63,000 pension recipients who were resident abroad.

Pension expenditure for statutory earnings-related pensions and pensions paid by Kela, by pension benefit in 2010

Quality description

Quality description: Statistics on Pensioners in Finland 2010

The Statistical Yearbook of Pensioners in Finland is published by the Statistical Department of the Finnish Centre for Pensions in co-operation with the Actuarial and Statistical Department of the Social Insurance Institution (Kela).

The obligation to compile statistics is prescribed to both Kela and the Finnish Centre for Pensions. The Act on the Finnish Centre for Pensions states that the responsibilities of the Finnish Centre for Pensions include e.g. the compiling of statistics in its sector of activities. Pursuant to the regulations of the Finnish Centre for Pensions, the production of statistics is handled by the Statistical Department. Kela’s tasks are stated in the Act on the Social Insurance Institution, including, among other things, the compilation of statistics, estimates and forecasts. Pursuant to the regulations of the Social Insurance Institution, actuarial calculation and compilation of statistics are included in the tasks of the Actuarial and Statistical Department of the central administration at Kela.

The compilation of statistics is funded annually from the funds of the Finnish Centre for Pensions and Kela.

Relevance of statistical information

The statutory Finnish pension security primarily consists of two statutory pension schemes, the earnings-related pension scheme and the national pension scheme. The Statistical Yearbook of Pensioners in Finland gives a comprehensive overall picture of the pensions paid by the Finnish statutory earnings-related and national pension schemes. The statistical yearbook collects the data on pensions received by a person from different parties into an integrated whole. The statistics are almost exhaustive with regards to statutory pension security.

Statutory pension provision also includes pensions from military injuries insurance, motor liability insurance and workers’ compensation insurance, i.e. so-called SOLITA pensions. Of these statistical figures only include SOLITA compensations (counted as pensions) for those receiving SOLITA pension in addition to their earnings-related or national pension. Persons receiving SOLITA pensions alone are not included in the statistic.

Besides statutory pensions, the statistics also include voluntary registered supplementary pension provision financed by the employer. On the other hand, voluntary non-registered supplementary pensions paid by the employer are not included in the figures of this publication, nor voluntary pension provision paid by the individuals themselves.

In the private sector the earnings-related pensions are administered by authorised pension insurance companies and company and industry-wide pension funds, and in the public sector by authorised pension providers in the sector. The Finnish Centre for Pensions functions as a centre for the earnings-related pension scheme and collects the information required for the administration of earnings-related pension matters, among other things, for its central register for the purpose of handling the tasks prescribed to it. The national pension scheme is managed by Kela. The Finnish Motor Insurers’ Centre and the Federation of Accident Insurance Institutions collect the necessary information needed for statistical compilation from the traffic and accident insurance providers.

The statistic contains data on the numbers, the average pensions and the pension size distributions of persons who received a pension at the end of the year. Additionally, it contains numerical data on those who have begun receiving a pension during the year, as well as information on the annual pension expenditure.

The SOLITA pensions are included among average pensions and in the pension size distribution because they take priority with respect to other pensions and may thus reduce the earnings-related and/or the national pension even to zero. Without the addition of SOLITA pensions, the picture of pension provision for the persons concerned would be essentially distorted.  The tables on pension expenditure do not, on the other hand, include SOLITA pensions. Neither does pension expenditure comprise pensions under the so-called old pension rules, paid by municipalities.

For example the following categorizations are used in the statistic: pension scheme, pension benefit, gender and age of the pension recipient, size of the pension, regional distribution and, for disability pensions, disease category.

This statistical publication is aimed at decision-makers, planners and researchers in social security and specialists in the pension field. The information is likely also of interest to the media, pensioner organisations and others with an interest in the area. Similarly comprehensive information on Finnish pension recipients is not available elsewhere.

Correctness and accuracy of data

The statistics in the publication are based on the aggregate data of pensions paid by the Social Insurance Institution and the earnings-related pension scheme, and the recipients of these pensions. The statistical data is formed from the joint statistical data warehouse (pension recipients and pension expenditure) and the statistical register of new retirees (new retirees).

The data warehouse for joint statistics contains data on all persons who drew a pension from the earnings-related or the national pension scheme on the last day of the year, as well as on the annual pension expenditure. The statistical register of new retirees contains data on all pensions that have started during the year. The Finnish Centre for Pensions maintains these statistical registers together with Kela.

The data warehouse for joint statistics has been assembled from the basic statistical register of the Finnish Centre for Pensions (including old earnings-related pensions of the state), and the Kela benefits from the statistical register of the pension benefit database of Kela. Military injury pensions and earnings-related pensions based on the so-called old rules (excl. old earnings-related pensions of the state) come from the pension database of Kela. Information about pensions according to the Motor Liability Insurance Act and the Workers’ Compensation Insurance Act is sent annually by the Finnish Motor Insurers’ Centre and the Federation of Accident Insurance Institutions.

Statistical register information on new retirees has been collected from the pension contingency register of the Finnish Centre for Pensions and the statistical pension register of Kela.

The data in the basic statistical register of the Finnish Centre for Pensions comes from the pension register of the Finnish Centre for Pensions, where the data is transmitted from the pension providers making the pension decisions. The pension contingency register is managed by Arek Oy, jointly owned by the pension providers and the Finnish Centre for Pensions.  The register service department of the Finnish Centre for Pensions is responsible for the content of the pension register.  The processing systems include authenticity and logical checks, where the programme requires correction or verification of the data.  The error messages may also be comments that do not inhibit the registration of the decision.

Correspondingly, the data in the statistical registers of Kela is based on the pension decisions made in its offices and at the central administration. The data of the joint statistics, gathered from the pension database of Kela, is data forwarded by other pension providers to Kela. The pension processing systems of Kela have been made primarily for the payment of pensions. Efforts are made to prevent errors from occurring by promoting close co-operation between experts responsible for benefits and statistics.

Flaws detected in the statistics are immediately corrected in the web service. A corrective page is added to printed publications that have not yet been distributed. If the error is substantial, a separate notification is delivered to those who have already received the publication.

Timeliness and promptness of data

The statistic on Finnish pensioners is published once per year. It is published in autumn of the year following the year of statistics. The time of publication is listed in the publication calendar of the Finnish Centre for Pensions on the address www.etk.fi/statistics and at the web pages of Kela at the address www.kela.fi/tilastot.  The data in the statistical yearbook are final.

Coherence and comparability of data

The data on earnings-related pensions in the statistic are coherent with the data in the statistic ‘Pensioners and insured in Finland’.  Data pertaining to national pensions, on the other hand, differs from the pension statistic of Kela where two concepts are concerned.  The concept ‘new retiree’ used in this statistic differs somewhat from the similar concept used by Kela, ‘new pensions’. Additionally, from 1996 onwards, this statistic does not include national pension paid as pure housing allowance or care allowance for pensioners, child increase or front veteran’s supplement.  Since 2008, the housing or care allowance of a pensioner has not been counted among the pensions. They are thus not included in the figures of this statistic or in the pension figures in the statistics of Kela.

There is data available on pension recipients since 1981, on new retirees since 2001 and on pension expenditure since 1995.

The time series of new retirees and the pension expenditure are comparable from the beginning.

The compilation of statistics for persons receiving a pension at the end of the year has undergone some changes over the years.  In 1991 the statistic was completed by adding the money amounts of SOLITA pension to the pensions of the individuals. In 1996 a new concept was introduced, ‘pension in one’s own right’, that corresponded to the previous concept ‘pensioners in their own right and/or special pensioners’. Each statistical publication contains a chapter called Concepts, where the definitions of concepts have been laid out for the statistical year in question.

Amendments to the legislation that may possibly affect the statistical figures have been compiled in the appendix to the annual publication.

The statistic uses applicable general standard categorizations, e.g. by region and disease (ICD-10).

Accessibility and transparency of data

The statistics are published in printed form as well as in electronic form on the web pages of the Finnish Centre for Pensions (www.etk.fi). Two separate annual statistics are published: Statistical Yearbook of Pensioners in Finland and Statistical Yearbook of Pensioners in Finland per Municipality (the latter in Finnish only).

The contact information for ordering a printed publication is available on the back of the title page. Contact information is also available from the web pages of the Finnish Centre for Pensions and Kela.