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

Earnings-related pension recipients in Finland

Increasing Number of Partial Disability Pension Recipients

In 2012, roughly 20,500 people retired on a disability pension; half of them were men and half of them women. Of these new retirees, over half began receiving rehabilitation allowance (temporary disability pension). The median age of those starting to receive rehabilitation allowance was 47 years, while that of new retirees granted disability pension until further notice was 57 years.

Persons who have retired on a disability pension in 2012, by main cause of incapacity for work

Mental and behavioural disorders were behind the rehabilitation allowance for 40 per cent of new retirees. Musculoskeletal diseases were the reason for a third of retirees, whereas the shares of other main disease categories were less than 10 per cent. For those retiring on a disability pension granted until further notice, the most common reason were musculoskeletal diseases, which accounted for 40 per cent. The following categories in size were mental and behavioural disorders (17%), diseases of the nervous system (10%) and the circulatory system (10%).

Both the disability pension granted until further notice and the rehabilitation allowance can be granted as either full or partial pension. Of everyone who retired on a disability pension in 2012, a fifth or 4,100 persons retired on a partial disability pension. Of those retiring on a partial disability pension, women accounted for two thirds (2,700). The average age of retirement on partial disability pension was 55 years, and for a full pension, 51.

Of all those retiring on a partial disability pension, the reason for disability for over half (56%) were musculoskeletal diseases. The share of mental and behavioural disorders was the second greatest at 17%. For those retiring on a full disability pension, the shares of both these disease categories are almost the same size, in other words approximately 30 per cent.

The shares of those receiving rehabilitation allowance and partial disability pension among disability retirees have grown over the last few years. Still in 2005, the share of rehabilitation allowances was 43 per cent and that of partial disability pensions 13 per cent of all starting disability pensions.

Quality description

Quality description: Pensioners and Insured in Finland 2012

The statistics Pensioners and insured in Finland is published by the Statistical Department of the Finnish Centre for Pensions in co-operation with Keva.

The Act on the Finnish Centre for Pensions states that the responsibilities of the Finnish Centre for Pensions include 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 also participates 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 data on the pensions received by an individual under the different earnings-related pension acts into an integrated whole.

In the private sector, the earnings-related pension security is managed by authorised pension insurance companies and company and industry-wide pension funds, and in the public sector primarily 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 statistic Pensioners and Insured in Finland covers the whole statutory earnings-related pension provision, as well as voluntary registered supplementary pension provision financed by the employer. Voluntary non-registered supplementary pension security paid by the employer is 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.

The statistics contain figures, median pensions and median ages of earnings-related pension recipients and new retirees on an earnings-related pension as 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. Equally comprehensive statistical data on Finnish pension recipients is not available elsewhere.

Correctness and accuracy of data

The statistics are based on composite data.

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. Disability pension decisions and data on income compensations regarding rehabilitation within the earnings-related pension scheme is also obtained from the pension register. Data on pension decisions by earnings-related pension providers are stored in the pension register.  Costs of rehabilitation services come directly from the earnings-related pension providers.

Data on those insured for earnings-related pension benefits is based on the earnings register, where information on work and earnings is entered by the earnings-related pension providers.  The earnings register also contains other information affecting the accrual of pension, e.g. unsalaried periods. This data is reported to the earnings register by e.g. Kela and the unemployment funds.

The regional data is based on the population data of the Social Insurance Institution. It is supplemented on the basis of the country of tax at source for pensions paid abroad, as reported by the pension providers.

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. Arek Oy is a company jointly owned by the pension providers and the Finnish Centre for Pensions.

Flaws detected in the statistics are immediately corrected in the web service. A correction page is added to printed publications that have not yet been distributed. If the error is substantial, 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.  The data in the statistics is final.

Coherence and comparability of data

The statistic has been produced since 1996.  From the beginning, it has covered the numbers of earnings-related pension recipients and new retirees, as well as the pension expenditure of the earnings-related pension scheme. The data content of the statistics has been extended over the years so that data on those insured for earnings-related pension was added in 2002, data on effective retirement age in 2005, and data on disability pension solutions in the earnings-related pension scheme in 2007.

In 1999, the concept of those starting to receive an earnings-related pension was changed.  Since then, those starting to receive a part-time pension are no longer considered as having retired. 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. During the years 1996-1998, new part-time pensioners were counted among those having retired on an earnings-related pension. As of the 1999 statistics, the time series of earnings-related pension retirees have been corrected retroactively. From this point of view, the 1996–1998 statistics are therefore not comparable with those of later years.

Data on those insured for earnings-related pension are comparable from the year 2007 onwards. Legal changes coming into force in the beginning of 2007 and the implementation of a new earnings register delayed the statistics for those insured for earnings-related pension over the period 2007-2009. Tables concerning the insured for the period 2007–2009 can be found in full at the web pages of the Finnish Centre for Pensions, https://www.etk.fi/statistics and the section Earnings-related Pension Recipients, as well as in the form of a time series starting with year 2010 statistics. In 2005, the number of those insured for earnings-related pension grew significantly, as all work carried out between the ages of 18 and 67 had to be insured following the pension reform.  Previously, those over 65 years of age were not statistically considered insured for earnings-related pension, meaning that the change brought three new age cohorts into the scope of the statistic.

The time series of the statistic are primarily comparable. Based on legal changes and feedback from users, the following changes have been made to concepts and classifiers:

  • Following the 2005 legal reform, pensions are no longer categorized according to how maximal they are.
  • Since 2005, disability pensions have been divided into full and partial pensions.
  • In 2006, the division based on rehabilitation background was removed from the tables on earnings-related pension rehabilitation.
  • In 2007, a regional categorization was added to the earnings-related pension expenditure, and a categorization of main reason for disability pension was added to the disability pension expenditure.

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

In co-operation with Kela, the Finnish Centre for Pensions also produces the Statistics on Finnish Pensioners. It covers the pensions of both the earnings-related and national pension schemes. Its figures on earnings-related pension recipients, new retirees on an earnings-related pension and earnings-related pension expenditure are congruent with the figures of this statistic.

Pension providers in the public sector also publish statistics on the operations of their own pension institution, in which the definitions of variables may differ somewhat from the definitions used in this statistic.

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. The information on how to order a printed publication is available on the inside of the title page as well as on the web pages 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, www.etk.fi/statistics > Statistical database.

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 Finnish Centre for Pensions, tilastot(at)etk.fi.

Further information