Fewer Finns retire on disability pensions
The number of Finns retiring on disability pensions each year has remained relatively stable throughout the 2020s. In 2024, this number saw a slight decrease, marking the lowest in statistical history. These figures come from the latest statistics by the Finnish Centre for Pensions.
In 2024, 17,500 people retired on disability pensions from Finland’s earnings-related pension system, a 1 per cent decrease from the previous year.
Although the number of new disability pensioners has remained constant this decade, there have been significant long-term changes.
Several factors contribute to this change, one being the aging population.
“In the early 2000s, many new retirees on disability pensions were from the baby boomer generation. Now, these individuals are on old-age pensions, and those retiring on disability pensions come from smaller age groups”, explains Statistics Planner Joonas Hautamäki.
Changes in the population structure are evident, particularly in the retirement rates of middle-aged people. Among the workforce under the age of 60, the number of those retiring on disability pensions has dropped to less than half of what it was in the 2000s.
“This significant decline contributes to the overall smaller numbers. In fact, last year saw a record low number of Finns retiring on disability pensions. The difference from recent years, however, is minimal.”
One notable trend in the statistics is the increase in the annual number of people aged over 60 retiring on disability pensions. The main reason for this is the rise in the retirement age.
“In 2024, more than 6,900 people over 60 retired on disability pensions, a 50-per-cent increase since 2017. Last year, a couple of thousand people aged 63 retired on disability pensions. Previously, they would have been granted old-age pensions”, states Hautamäki.
Same diseases cause disability
According to statistics from the Finnish Centre for Pensions, about one in three disability pensions is due to musculoskeletal disorders. Nearly as many disability pensions are granted due to mental disorders.
Last year, nearly 5,800 people retired on disability pensions due to musculoskeletal disorders and just under 5,500 people due to mental disorders.
The risk of disability has halved
When the number of people retiring on disability pensions is adjusted relative to the insured population, we get the incidence rate of disability pensions. Age-standardized incidence rates remove the effect of changes in the age structure, thus better measuring the risk of becoming disabled in different years.
The indicator shows that the risk of disability has decreased since the turn of the millennium.
“In the early 2000s, the incidence rate of disability pensions among the working population was over 1 per cent. Now, the risk of disability has halved This means that the working-age population’s ability to work has clearly improved”, comments Development Manager Jari Kannisto.
An analysis of diagnoses reveals significant differences in the diseases leading to disability among different age groups. Finns experience mental health issues quite evenly across different ages. However, other diseases become significantly more common in the oldest age groups.
“While mental health disorders among young people are a significant problem, they do not stand out in employment statistics. Many young people fall ill before entering the workforce and never get the chance to join it. The risk of mental health disorders among those in the workforce is similar, around 1-2 per cent, for all under-60s.”
