A more recent publication of this set of statistics is available: Earnings-related pension recipients in Finland

Earnings-related pension recipients in Finland

3.6 million people insured for earnings-related pension benefits in Finland

By the end of 2010, a total of 3.6 million people between the ages of 18 and 68 were insured for earnings-related pension benefits in Finland. Almost 2.4 million were employed or self-employed at the end of the year. Every sixth person insured for earnings-related pension benefits, 594,000 in total, received some kind of  pension based on their own work history at the end of the year.

58,000 employees or self-employed persons were between 63 and 68 years old at the end of 2010. The work of this age cohort has clearly increased following the pension reform. By the end of the first year following the reform, 2005, 26,000 people from this age cohort were working. Growth has been particularly strong in the older age cohorts, in other words the 65 to 68-year-olds. 6,600 of them were at work in 2005, and in 2010 the figure was almost three times as much at 19,300.

87,000 people worked alongside receiving a pension, a third of which or 29,000 received a part-time pension.

Insured persons divided into employed or retired as on 31.12.2010

 

Quality description

Quality description: Pensioners and Insured in Finland 2010

The statistics Pensioners and insured in Finland is published by the Statistical Department of the Finnish Centre for Pensions in co-operation with Keva (formerly the Local Government Pensions Institution) and the State Treasury.

The Act on the Finnish Centre for Pensions states that the responsibilities of the Finnish Centre for Pensions (ETK) include, among other things, 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.

The editing of the statistics is financed by the Finnish Centre for Pensions. Keva and the State Treasury participate in the printing costs for the printed publication.

Relevance of statistical information

Statutory pension security in Finland consists primarily of two statutory pension schemes, the earnings-related pension scheme and the national pension scheme. Pensioners and insured in Finland provides an overview of the Finnish earnings-related pension scheme. It collects the data on the pensions received by a person under the different earnings-relate pension acts into an integrated whole.

The statistics cover the whole statutory earnings-related pension provision, as well as voluntary registered supplementary pension provision financed by the employer. Voluntary non-registered supplementary pensions paid by the employer are not included in the figures of these statistics, nor voluntary pension provision paid by the individuals themselves. The statistics also do not include pensions from the national pension scheme and pension from workers’ compensation, motor liability and military accident insurance, so-called SOLITA pensions.

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 is the central body of the earnings-related pension scheme. One of its assignments is to collect the information required for the administration of earnings-related pension matters for the purpose of handling the tasks prescribed to it.

The statistics contain figures, median pensions and median ages of earnings-related pension recipients and new retirees on an earnings-related pension at the end of the year. The statistics also contain information on earnings-related pension expenditure, expected effective retirement ages, solutions relating to disability pensions, earnings-related pensions paid abroad, vocational rehabilitation and those insured for earnings-related pension benefits.

The main classifier in the statistics is the division of the earnings-related pension scheme into the private and the public sector. The following classifications are also used in the statistics: pension benefit, pension size, gender and age, regional distribution and regarding disability pensions, the disease category.

The statistics is aimed at decision-makers, planners and researchers in social security and specialists in the pension field. The contents are hopefully also of use and interest to the media, organisations within the field and others who need information on the topic. Equally comprehensive statistical data on the Finnish earnings-related pension scheme is not available elsewhere.

Correctness and accuracy of data

The statistics are based on composite data.

All pension decisions made at the authorised pension providers and the data connected with them are entered into the pension contingency register. The data from the pension register is the basis for information on earnings-related pension recipients and persons having retired on an earnings-related pension, as well as on earnings-related pension expenditure and disability pension decisions. The data on income compensations regarding rehabilitation within the earnings-related pension scheme is also obtained from the pension register. Data on rehabilitation costs is collected directly from the pension providers.

Data on those insured for earnings-related pension benefits is based on the earnings register, where information on the work of the insured as well as other periods affecting the pension, such as unsalaried periods accruing pension, are entered.   As regards employment contracts, the data are based on the employment notifications of the pension provider which has insured the employment contract. Other parties providing information to the earnings register include e.g. the Social Insurance Institution and the unemployment funds.

The regional data is based on the data file on municipality of residence of the Social Insurance Institution. It has been supplemented on the basis of the country of tax at source for pensions paid abroad, as reported by the pension providers to the Finnish Centre for Pensions.

The pension register of the Finnish Centre for Pensions is managed by Arek Oy, owned jointly by the pension insurers and the Finnish Centre for Pensions. The Register Services Department of the Finnish Centre for Pensions is responsible for the contents of the registers, the accessibility, scope, legality and accuracy of the data needed for the implementation of pension provision and the clarification of error conditions in the contents. The handling systems include authenticity and logical checks where the programme requires correction or verification of data. The error messages may also be comments that do not inhibit the registration of data.  Arek Oy is responsible for the information technology aspects of the registers.

Errors discovered in the statistic are immediately corrected in the web service. A correction page is added to the printed, undistributed publications.  If the error is extensive, a separate bulletin is issued for those who have already received the publication.

Timeliness and promptness of published data

Pensioners and insured in Finland is published once a year and comes out towards the end of the year following the statistical year. The date of publication of the statistic has been presented in the Release Calendar on the website of the Finnish Centre for Pensions athttps://www.etk.fi/statistics section Release Calendar. The data in the statistics is final.

Coherence and comparability of data

In cooperation with the Social Insurance Institution, the Finnish Centre for Pensions annually publishes the Statistics on pensioners in Finland as part of the annual official statistics of Finland.  The statistics cover pensions from both the earnings-related and the residence-based national pension schemes.  The figures on recipients of an earnings-related pension, persons having retired on an earnings-related pension and earnings-related pension expenditure in these statistics are consistent with the figures in these statistics.

The public-sector pension providers also publish statistics regarding their own activities, and there the definitions of the variables may differ somewhat from the definitions used in these statistics.

In broad outline, the data in these statistics is comparable since the start of the publication series, i.e. from 1996 onwards. The data content of the statistics has been extended over the years, and classifications added as a result of legislative changes and feedback from users. In addition, some changes have been made to the concepts over the years, which, for their part, make a comparison less accurate.

The most significant change in concept concerns those who have started receiving a part-time pension. In 1996–1998, those who had started receiving a part-time pension were included among those who had retired on an earnings-related pension.  Since 1999, they are not considered as having retired when they start receiving a part-time pension; instead they are considered as having retired only when they start receiving some other pension based on their own work history, usually an old-age pension. As of the 1999 statistics, the time series have also been corrected retroactively. From this point of view, the 1996–1998 statistics are therefore not comparable with those of later years.

Another significant change concerns the data on fully-effective pensions. In the 1996–1999 statistics, separate tables were produced for all recipients of an earnings-related pension and all persons who had retired on an earnings-related pension as regards those who received a fully effective pension and those who had retired on a fully effective pension. In 2000–2004 the data on fully effective pensions was only obtained for persons who received disability pensions and unemployment pensions and for those who had retired on these types of pensions. In connection with the 2005 pension reform, the concept of projected pensionable service was changed so that the pensions can no longer be classified according to whether they are fully effective.

In 2002, a table describing the effective retirement age was added to the statistics. Due to the change in the earnings-related pension act that came into force in early 2007 and the delays caused by the simultaneous implementation of the new earnings register, the statistics of the years 2007-2009 do not contain data on those insured for earnings-related pension benefits. They are once again included in the 2010 statistics.  The statistics of 2010 also include data on the most important figures concerning the insured for the years 2007–2009. Tables concerning the insured for the period 2007–2010 can be found in full at the web pages of the Finnish Centre for Pensions, https://www.etk.fi/statisticsand the section Earnings-related Pension Recipients. Legislative changes of 2005 and 2007 make the time series comparability of those insured for earnings-related pension benefits more difficult.  Since 2007, the figures have been comparable.

Since the 2005 statistics, separate tables have been produced on disability pension recipients and persons who have retired on a disability pension as regards recipients of a full and a partial pension, as well as persons who have retired on such pensions. In the same year, a separate table describing the effective retirement age was added to the statistics.

In 2006 the division on the basis of rehabilitation history was left out of the tables on rehabilitation within the earnings-related pension scheme.

Since the 2007 statistics, the earnings-related pension expenditure is also classified by region and the disability pension expenditure by the main cause for the disability pension. In the same year, tables on disability pension decisions were added to the statistics.

General standard classifications are used in the statistics, such as for example regional and disease classifications (ICD-10).

Availability and clarity of data

The statistical data is published annually in the booklet Pensioners and Insured in Finland, published in print as well as available in electronic format from the web pages of the Finnish Centre for Pensions. Instructions on ordering the printed publication can be found on the inside of the title page and the website of the Finnish Centre for Pensions. Some of the data in the statistics is also published in the statistical database of the Finnish Centre for Pensions.

A description of the statistics is available from the website of the Finnish Centre for Pensions athttps://www.etk.fi/statistics .

Additional information on the statistics is available from the statistical service of the Statistical Department at the Finnish Centre for Pensions on tilastot@etk.fi.