Average Pensions

The figure describing the average pension may vary considerably depending on the point of view and the group under review. For this reason, one figure is not enough to describe the average pension; instead, we should review several different average figures

Figure describing the average total pension

The statutory total pension consists of an earnings-related pension, a national pension, or both an earnings-related and a national pension, and of a possible guarantee pension. In addition, possible pensions granted on the basis of the military accident, motor liability and workers’ compensation insurance are also included in the calculations.

The average total pension calculated for all pension recipients is the average figure for the most extensive group of pension recipients possible. In 2016, this figure was EUR 1,552/month. The figure includes pensions paid abroad as well as survivors’ pensions.

Since the average pension paid abroad amounted to EUR 401 per month, and the average orphan’s pension also amounted to EUR 381 per month, the inclusion of these pensions reduce the average total pension.

If the group of pension recipients is limited to persons residing in Finland who receive only a pension based on their own working career (pension in their own right), the average total pension at the end of 2016 amounted to EUR 1,632/month. Part-time pensions are not included in these calculations.

Average total pension of pension recipients residing in Finland and receiving a pension in their own right, by pension structure and gender and by 31 Dec. 2016

 Men  Women  Total

Average total pension

EUR/month

 1,848

 1,453

 1,632

share of earnings-related pension

 1,713

 1,286

 1,479

share of pension from Social Insurance Institution *

 112

 151

 134

share of SOLITA pensions

23

16

19

 

 

 * includes the guarantee pension

Pension recipients by size of overall pensions as at 31.12.2016

Pensioners on old-age pension have the highest total pensions

When calculating per pension type, the average total pension of persons drawing an old-age pension was the highest, EUR 1,716/month in 2016. The average total pension of a person drawing on a disability pension was EUR 1,118/month.

The average earnings-related pensions have risen

At the end of 2016, the average pension of persons receiving a pension based on their own work history (excluding persons on a part-time pension) was EUR 1,455/month. This figure differs from the previously presented average total pension (EUR 1,632) because, when calculating this particular average earnings-related pension, part-time pensions as well as survivors’ and national pensions have been excluded.

On average, new earnings-related pensions are higher than the pensions in payment. This is explained partly by the higher pensionable earnings of the younger cohorts, and partly by the fact that pensions in payment are adjusted with an index that takes the changes in the economy’s real earnings level into account only in part.

The commencement phase of the earnings-related system remains evident in that the time to accrue an earnings-related pension is shorter for persons who have been retired already for a longer period of time than for those who are retiring now.

The average earnings-related pension based on the person’s own work history of those retiring in 2016 was EUR 1,587/month, which is EUR 130 more than for all recipients of an earnings-related pension.

The highest average earnings-related pensions are old-age pensions. At the end of 2016, the average pension of persons receiving an earnings-related pension in the form of an old-age pension was EUR 1,508/month. The corresponding figure for persons retiring on an old-age pension in 2016 was EUR 1,771/month. In other words, the starting old-age pensions in 2016 were, on average, EUR 260 higher than the old-age pensions already in payment.

Pension recipients receiving a pension in their own right per 31 Dec. 2016 new retirees on an earnings-related pension in 2016 and the average earnings-related pension per pension type.

Recipients of an earnings-related pension New retirees on an earnings-related pension
Pension type No.

Average pension

EUR/month

No.

Average pension

EUR/month

Old-age pension

 1,249,208

 1,508

 56,764

 1,771

Disability pension

  152,904

 1,027

 18,834

 1,040

Farmers’ special pension

13,615

676

235

 1,125

Total

1,402,178

1,455

 75,791

 1,588

Women’s average pension 66 per cent of men’s

On average, men’s earnings-related pensions are higher than women’s. At the end of 2016, the difference in the pensions in payment was EUR 580 in favour of the men. The average earnings-related pension was EUR 1,192/month for women and EUR 1,772/month for men. Men’s larger earnings-related pensions are due to their longer working careers and higher wage level compared to women’s.

If survivors’ pensions, national pensions and pensions based on military accident, motor liability and workers’ compensation insurance are included, i.e. if we deal with total pensions, the difference shrinks to an ample EUR 400/month. In this case, the average total pension for men is EUR 1,884/month and for women EUR 1,472/month.

Average pension in relation to average earnings

Although the average pensions (excluding disability pensions) have increased in real terms already for decades, the average replacement ratios of disability pensions compared to the economy’s average wages have decreased from approximately 47 per cent in the 2000s to below 35 per cent in recent years. For those receiving old-age pension, the average replacement ratio has remained at over 50 per cent of the average wage in the economy.

Average total pension of persons residing in Finland and receiving old-age and disability pension in 2000-2016.

Further inormation