Finnish earnings-related pension provider Elo rejected 45 per cent of disability pension applications in 2024 as the number of applicants continues to rise.

Elo services director, Heini Pellinen, has raised concerns about the lack of support citizens have access to when faced with illness, be that physical or mental, which is leading them to turn to the pension companies.

Pellinen predicts that rejection rates will increase from the current levels as changes are made to social security, unemployment protection and various benefits.

“The fewer the different pathways out of work and challenges in accessing care, the more people will turn to us. People come to us for support in situations where the conditions for disability are not met. After a rejection decision, we have no means of helping people to move on. We share our concern about where these people will get help," she said.

Earlier this month, one of Elo’s competitors, Varma, reported a 6.5 per cent increase in disability pension applications in 2024, of which the largest increase was seen in the under-25s and mental illness remained the most common cause of disability.

The data for Elo is similar, mental illness was also the most common reason for claiming a disability pension in 2024. However, most pensions were granted for diagnoses of musculoskeletal disorders.

“Mental health disorders appear to have taken root in working life. Young people are the main claimants of disability pensions for mental health reasons, but it affects Finns of all ages. Working life needs more systematic ways to prevent stress and tackle mental health challenges," Pellinen said.

According to Pelle, problems in the public health system, such as difficulties in accessing treatment, obtaining diagnoses and long waiting lists for surgery, are also reflected in the number of applications and contacts made to the pension company.

“The gradual increase in the retirement age is a difficult tick, especially for people doing hard physical work. At the pension company, we see how the over-60s are physically challenged. While waiting for surgery and treatment, people are on long periods of sick leave and this is also likely to cause mental health challenges," she said.

Therefore, Pellinen argues that it should be essential for the working-age population to receive timely diagnoses and treatment in a situation where their ability to work is impaired.

“A situation in which illnesses and symptoms are exacerbated by waiting is toxic to the ability to work. We know from research that longer absences significantly reduce the chance of returning to work. It is important for society as a whole to reduce the number of long periods of sick leave," she concluded.

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