In 2015, statutory earnings-related pensions were paid to the amount of 25.3 billion euros. The amount grew by an ample 800 million euros compared to 2014. The largest average pensions paid abroad were paid to Portugal. The pension gender gap is emphasized at both ends of the income spectrum.
In 2015, a total of 28.9 billion euros were paid in pensions in Finland. Earnings-related pensions accounted for 25.3 billion euros.
The pension expenditure thus grew by approximately three per cent year-on-year. The pension expenditure grew by 827 million euros compared to 2014 due to a rising number of retirees receiving an earnings-related pension and rising pension levels.
Old-age pensions accounted for 84 per cent of the pension expenditure, disability pensions for 8 per cent and survivors’ pensions for 7 per cent.
Less than one per cent of all earnings-related pensions were paid abroad, to an amount of 226 million euros.
Large pensions to Portugal
Earnings-related pensions were received by circa 1,400,000 persons at the end of 2015, of whom 34,000 lived abroad. Three fifths of them were Finnish citizens.
Most of the pension recipients residing abroad live in Sweden (18,700 persons). On average, the largest pensions were paid to Portugal (EUR 3,571), Spain (EUR 1,791) and France (EUR 1,649). The average monthly earnings-related pension paid abroad amounted to EUR 548.
“Portugal has clearly become more popular. In 2010, a total of 102 pension recipients lived there. In 2015, they numbered already 433. At the same time the average pension level of pensions paid to Portugal has risen from 2,140 euros to nearly 3,600 euros,” explains Tiina Palotie-Heino, Statistics Manager at the Finnish Centre for Pensions.
Large pensions to men
A total of 55,000 persons retired on an old-age pension in 2015. Their average monthly earnings-related pension was 1,797 euro, which is 300 euros more than the average earnings-related pension of all old-age pension recipients (EUR 1,486). New female retirees on an old-age pension received 1,515 euro and male retirees 2,083 euros.
The gender gap was particularly prominent in the group of new retirees receiving a monthly pension of 4,000 euros or more. As many as 80 per cent of them were men. Five per cent of all new retirees received a pension higher than 4,000 euros per month.
“This situation depicts the role and status of men in the Finnish working life. However, the situation is changing gradually: In 2010, the share of men among new retirees receiving a pension higher than 4,000 euros was 85 per cent,” Palotie-Heino explains.
The average retirement age of the new retirees on an old-age pension was 74.0 years.
The data is based on the pension register of the Finnish Centre for Pensions. The figures do not include pensions paid by the Social Insurance Institution of Finland (Kela) and survivors’ pensions.
Publication: Earnings-related pension recipients in Finland