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

Statistics on Pensioners in Finland

Mental disorders the most common cause of retirement on disability pensions among the young

At year-end 2016 there were 23,300 disability pension recipients aged under 35 in Finland. The largest cause of disability among young disability pension recipients was a diagnosis in the category of mental and behavioural disorders, which accounted for four-fifths of the total. Congenital malformations accounted for 8 per cent and diseases of the nervous system for 6 per cent.

Resident disability pension recipients under 35 retired due to mental and behavioural disorders, by mental health diagnosis as at 31 Dec 2016

Mental and behavioural disorders Number Share, %
Mental retardation 6,500 35
Schizophrenia etc. 4,600 25
Depression 2,700 15
Other mood disorders 1,000 5
Disorders of psychological development 2,000 11
Neuroses etc. 1,000 6
Other mental health diagnoses 800 4
All 18,500 100

At year-end 2016 there were 18,500 persons under 35 who had retired on mental health grounds. The most common mental health diagnosis was mental retardation, which accounted for 35 per cent of all mental health related causes for retirement. The next biggest categories were schizophrenia (25%), depression (15%) and disorders of psychological development (11%).

Disability pensions can be awarded either for until further notice or as a fixed-term cash rehabilitation benefit. In 2016, the latter accounted for about 40 per cent of all disability pensions in the age group under 35. If pensions awarded on grounds of mental retardation are excluded, cash rehabilitation benefits account for over one-half of all young people’s disability pensions.

Average monthly pension €1,632

The average monthly total pension in Finland in 2016 was 1,632 euros. This is about 20 euros more than in 2015. The median monthly pension was 1,405 euros, or 16 euros more than in 2015.
On average, men received higher pensions than women. The average monthly pension for men in 2016 was 1,848 euros and for women 1,453 euros. Women’s pensions averaged 79 per cent of men’s, an increase of one percentage point compared to 2015.

The data is per year-end 2016 and based on joint statistics of the Finnish Centre for Pensions and the Social Insurance Institution of Finland (Kela).

The statistics depicts the average monthly pension of people living in Finland who receive an earnings-related or a national pension. The figures exclude persons who receive a part-time pension or only a survivors’ pension.

Circa 1,460,000 persons receive a pension in their own right in Finland. Of all persons aged 16 or above, nearly one third (32%) receive a pension. More than 40% of the citizens in nearly every second municipal receive a pension. In 29 municipals, more than 50% are retirees.

Distribution of total pension received in one’s own right of persons residing in Finland, 31 Dec. 2016

Statistical tables

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Description

Statistics on Pensioners in Finland

Producers: Finnish Centre for Pensions and the Social Insurance Institution of Finland
Website: All pension recipients
Subject area: Social security
Part of the Official Statistics of Finland (OSF): Yes

Description

The statistics offers a general overview of recipients of earnings-related and national pensions in Finland.

Data content

The statistics includes data on all recipients of earnings-related and national pensions and also new pension recipients.

The data on pension recipients living in Finland and abroad are presented separately.

Classification

Pension scheme; pension benefit; pension amount; gender, age, nationality and country of residence of pension recipient; disease classification ICD-10; regional classification: municipality, province

Methods of data collection and source

The statistics is based on the registers of the Finnish Centre for Pensions and the Social Insurance Institution of Finland.

Update frequency

Once a year

Time of completion or release

The statistics on pension recipients is released in the spring following the statistical year. The data on new retirees is released in year after the statistical year. For a more detailed schedule, consult the Release Calendar

Time series

The statistics has been released since 1981. The statistics has been supplemented with data on new retirees as of 2001.

For the main part, the time series of the statistics are comparable. The Quality Description (section “Coherence and comparability of data”) of the statistics includes more detailed information on the comparability of the time series.  https://www.etk.fi/en/service/quality_description/760/quality_description

Key words

social insurance, pension, national pension, earnings-related pension, old-age pension, disability pension, unemployment pension, farmers’ special pension, part-time pension, survivors’ pension, retirement

Concepts and Definitions

Statistical units

Pension recipient

A pension recipient is a person who receives a pension in his own right or a survivors’ pension on the last day of the year of statistics. One person may receive simultaneously pensions both under several different pension acts and of several different types.

Persons receiving pensions in their own right are persons receiving old-age, disability, unemployment or part-time pensions, or special pensions for farmers.

All pension recipients include persons receiving pensions in their own right as well as the recipients of survivors’ pensions.

A person simultaneously receiving a pension paid by Kela and an earnings-related pension is a person who receives a pension from both schemes, as stated in the heading of the table. For example in the table for disability pension recipients, the pension from both schemes must be a disability pension.

New retiree

A new retiree is a person whose pension in his own right (other than part-time pension) started during the year of statistics. A further criterion is that the person has not received a pension in his own right (does not concern part-time pension) for at least two years.

A person is considered a new retiree from the earnings-related or national pension scheme during the year in which the transfer from said scheme took place. The criterion for all new retirees is that they have not received pension in their own right from either scheme for at least two years.

Persons having started to receive part-time pension are not considered as having retired, so they are not included in the total numbers of new retirees. Persons having started to receive part-time pension are not included in the number of new retirees until the year when they start receiving some other pension in their own right.

Factors describing the pension recipients

Age

The pension recipient’s age is the age at the end of the year of statistics. A new retiree’s age is, in general, the person’s age when the pension starts. When calculating the share of new retirees in the population per age group, the person’s age at the end of the year of statistics is used.

The average age is the arithmetic mean of the ages of new retirees.

The median age is the observation at the mid-point of the material, i.e. half of the new retirees are younger than the median age and the other half are older.

Average pension

The pension can be made up of an earnings-related pension, a national pension paid by Kela, and a SOLITA or a guarantee pension related to the above pensions. The average pension is the arithmetic mean of the gross pensions.

The average pension in one’s own right of those who receive a pension in their own right includes the euro amount of the pensions in one’s own right (excluding part-time pensions). The average pension in one’s own right of new retirees is calculated as the average value of pensions that began during the year and were in force on the last day of the year. The calculations thus do not include pensions that began during the year and also ended during the year.

The average total pension of those who receive a pension in their own right includes, besides the aforementioned, also the amount of survivors’ pensions and the amount of guarantee pensions, child increases and front-veterans’ supplements paid by Kela.

The average survivors’ pension of the recipient of a survivors’ pension only includes the euro amount of the survivors’ pension, and the average total pension includes all benefits of the recipient of a survivors’ pension that are paid as pensions.

The tables showing average total pension and comprising all pension recipients also include part-time pension recipients.

Illness

The categorizing of persons receiving disability pension or having retired on disability pension by disease is based on the main disease which is the basis of the pension. The data on diseases is primarily based on the diagnosis of the earnings-related pension scheme.

The main groups and some subgroups of diseases are shown for the 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.

Regional division 

In the statistic, regions are categorized based on the regional categorization valid at the end of the year of statistics. The domicile of a person equals the domicile of the last day of the year of statistics. Data on domiciles is available from the population data of Kela.

In the statistic, countries of residence are categorized based on the country categorization valid at the end of the year of statistics. In pensions paid abroad, the person’s country of residence is the country of residence on the last day of the year of statistics. Data on country of residence is available from the population data of Kela, completed with information received from the pension providers.

Citizenship

In the statistics, citizenship data is categorized based on the currently valid citizenship categorization at the end of the year of statistics. The citizen-ship data is received from the population data of Kela and completed with information received from the pension providers.

Population share

Population shares of pension recipients are calculated for pension recipients resident in Finland in per cent of the population insured for national pension benefits. The population more or less covers the resident population of the country, but also includes Finnish citizens temporarily resident abroad.

Population shares of persons receiving pension in their own right are presented from two different perspectives. First, the population shares of all persons receiving pension in their own right are reviewed. As additional information, population shares are calculated with part-time pension recipients excluded. This is because although part-time pension recipients do qualify as recipients of pension in their own right from the perspective of the pension system, they are considered to be working, not retired, in the population review. Working is a prerequisite for receiving part-time pension.

When calculating the population share of new retirees, the statistics of Kela of the end of the year before the year of statistics is used, minus the pension recipients (excl. recipients of survivors’ pension and part-time pension).

Quality Description

Quality description: Statistics on Pensioners in Finland 2016

The Statistical Yearbook of Pensioners in Finland is published by the Statistics Unit of the Planning Department of the Finnish Centre for Pensions (ETK) in co-operation with the Statistics and Data Warehousing Section of the Social Insurance Institution of Finland (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 one of the responsibilities of the centre is to compile statistics in its field of business. The  Statistics Unit of the Planning Department compiles the statistics at the Finnish Centre for Pensions. The Act on the Social Insurance Institution states that the tasks of Kela include to compile statistics, projections and forecasts. Under the regulations of the Social Insurance Institution, the Statistics and Data Warehousing Section  of the Information and Communications Unit produces actuarial calculations and compiles statistics.

The production of the statistics is financed jointly by 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. It 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.

In the private sector, earnings-related pensions are administered by authorized pension providers as well as company and industry-wide pension funds and, in the public sector, mainly by Keva. 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. The national pension scheme is managed by Kela.

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 SOLITA compensations (counted as pensions) for those receiving SOLITA pension in addition to their earnings-related or national pension are included. Persons receiving SOLITA pensions alone are not included in the statistic.  The Finnish Motor Insurers’ Centre and the Finnish Workers’ Compensation Center collect the necessary information needed for statistical compilation from the traffic and accident insurance providers.

The Guarantee Pension Act came into force on 1 March 2011.  It guarantees a minimum pension for all resi-dents of Finland. Only those receiving a guarantee pension along with an earnings-related or national pension are included in this statistic. Persons receiving guarantee pension alone are not included in the statistic.  It is Kela who pays the guarantee pension.

In addition to the statutory pensions, the statistic also includes the voluntary registered supplementary pension security financed by the employer.  On the other hand, voluntary non-registered supplementary pension security paid by the employer is not included in the figures of this publication, nor voluntary pension provision paid by the individuals themselves.

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 new retirees during the year.

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 (for disability pensions).

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 field. 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 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 and guarantee pensions from the statistical register of the pension benefit database of Kela (including guarantee pensions.) 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 Finnish Workers’ Compensation Center.

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. The time of publication is listed in the publication calendar of the Finnish Centre for Pensions at www.etk.fi/statistics and on the web pages of Kela atwww.kela.fi/statistics. The data in the statistical yearbook are final.

Coherence and comparability of data

The statistic has been produced since 1981.  From the beginning, it has depicted the numbers and average pensions of individuals receiving pension from the earnings-related and/or national pension schemes.  Data on new retirees was added in 2001. Over the years, amendments have been made to both pension schemes and the scope of the statistic has been broadened.  The time series of the statistic are primarily comparable.

The comparability of the time series is affected by e.g. the following changes:

  • In 1991 the statistic was completed by adding the money amounts of SOLITA pension to the pensions of individuals receiving earnings-related or national pension. SOLITA pensions are included in average pensions and the size distributions of pensions. They are primary to the earnings-related and national pensions, meaning that the addition complements the pension security of said individuals to a significant degree.
  • 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’.
  • Since the start of 2001, the basic share of the national pension has no longer been paid. The change did not affect the total number of pensioners, but transferred those receiving both earnings-related pension and national pension to those receiving only earnings-related pension. Removal of the basic share was due to the national pension becoming deductible by the earnings-related pension at the start of 1996, when the national pension was no longer granted without an additional share.  Prior to 1 January 1996, national pensions in payment without additional shares were gradually reduced over a period of 5 years.Along with the removal of the basic share, since 1996, national pension paid as housing or care allowances, child increase or front-veterans’ supplement has not been included among national pensions in this statistic.
  • Since 2008, the concept of national pension changed and the housing or care allowance of a pensioner is no longer counted among pensions. They are thus not included in the figures of this statistic or in the pension figures in the other statistics of Kela. The change slightly reduced average pensions.
  • Since 2011, when the Guarantee Pension Act came into force, the cash amount of the guarantee pension was added to the total pension of pensioners receiving earnings-related and/or national pension (not to pension in one’s own right or survivors’ pension.) The change raised the averages of total pensions.

Concepts and definitions have been presented on the statistics page.  They have also been laid out in each statistical publication, separately 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).

Information about earnings-related pensions in the statistic is congruent with the information in the statistic “Pensioners and insured in Finland”, produced by the Finnish Centre for Pensions.

Information on national pensions differ with regards to the concept ‘new retirees’ in the pension statistic of Kela. The statistics of Kela utilize the concept ‘ new pensions’.

Accessibility and transparency of data

Two separate annual statistics are published: Statistical Yearbook of Pensioners in Finland and Statistical Yearbook of Pensioners in Finland per Municipality. Both are published online on the website of the Finnish Centre for Pensions.  The former is also published in print.  Some of the data is also published in the statistical database of the Finnish Centre for Pensions, www.etk.fi/statistics as well as in the statistical database of Kela on www.kela.fi/statistics.

A description of the statistic has been presented on the website of the Finnish Centre for Pensions.
Additional information about the statistic is provided by the statistical service of the Statistical Unit of the Finnish Centre for Pensions, tilastot@etk.fi and the statistical data service of Kela,tilastot@kela.fi.