Forty per cent of Finnish disability pension applications were rejected in 2024 – twice the level in 2007 – according to new figures from the Finnish Centre for Pensions (ETK).

The study tracked rejection rates since 2007, taking into account applicants’ age, sector of work, education, and illness type.

While these factors influence outcomes, ETK found that rejection rates have risen steadily across almost all groups. Importantly, the data shows no evidence that more people are applying for disability pensions now than in 2007.

“The rejection rate is higher for applicants aged under 55 than for older applicants, for those working in the private sector than in the public sector, and for those with primary or secondary education than for those with lower or higher tertiary education,” said ETK researcher, Mikko Laaksonen.

The study found that illness type also matters. Rejection rates are highest for claims based on mental disorders, while the unemployed face higher rejection levels than those previously in work.

Applicants for partial disability pensions are more likely to succeed than those seeking full disability pensions, but the trend of rising rejections is similar across both groups.

Since 2007, the proportion of claimants under 40 and over 60 has increased. According to Laaksonen, however, such demographic shifts explain only a small part of the rise in rejections.

“Changes in some factors, such as age, have even masked the increase in the rejection rate – without such changes, the rejection rate would have increased even more,” he noted.

ETK suggested the rise may reflect a tightening of the settlement line for invalidity pensions over time, although no legislative changes or formal adjustments to pension guidelines have been made since 2007. Pension institutions also deny any deliberate tightening.

According to the pension institutions, there has also been no deliberate tightening of the settlement line for invalidity pensions.

Laaksonen said keeping the settlement line fixed is difficult in a changing labour market: “There is no permanent yardstick for assessing work capacity.”

“Social debate and changing mindsets – with an emphasis on extending working careers, prioritising rehabilitation and preventing disability pensions – can also influence who is considered sufficiently fit for work when retirement decisions are made.”

The findings are likely to fuel debate in Finland over how to balance fair access to disability pensions with policy efforts to keep people in work for longer. Several pension companies in Finland have been vocal on the number of disability pension claimants and subsequent rejections, particularly on mental health grounds.

Elo director of work ability, Kati Korhonen-Yrjänheikki, recently called on workplaces to take greater responsibility for employee wellbeing amid a rising trend of young adults suffering from stress and anxiety.

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