Finnish earnings-related pension provider Varma has reported a 2.9 per cent fall in disability pension applications in 2025, compared to 2024, but, along with Elo, it has highlighted that mental health disorders continue to be the most cited reason for disability pension applications.

Varma received 5,870 new disability pension applications in 2025, with the number of applications falling after three years of growth.

Varma chief physician, Jan Schugk, explained that the economic situation may be behind the decline, as it is “normal for incapacity for work to decrease when the economy weakens, and unemployment increases”.

For Varma, mental health disorders were the main cause of disability and accounted for 31.9 per cent of cases.

The proportion was as high as 40.3 per cent among women and significantly lower among men, at 27.1 per cent.

Second to mental health were musculoskeletal disorders, accounting for 27.4 per cent. In partial disability pensions, which are most often granted to older people, musculoskeletal disorders were the main cause of disability.

“In terms of disease groups, there has been a significant increase in the number of neuropsychiatric developmental disorders and post-traumatic stress disorders diagnosed in adulthood. Neither of these is usually the primary diagnosis in applications, but they are included in the diagnosis book.

“On the other hand, diagnoses related to long Covid are rarely seen in applications, even though there is still a lot of coronavirus,” Schugk noted.

Disability statistics published by Elo also showed mental health issues as the most common reason for a working-age Finn to apply for a disability pension. Its data revealed that people under the age of 35 are the age group that is granted the most mental health-related disability pensions.

However, Elo director of work ability, Kati Korhonen-Yrjänheikki, sees some light at the end of the tunnel as the number of pension applications from young adults has levelled off.

“It is too early to draw conclusions about the situation among people under 35, but I dare say that the increase in the number of applications seems to have levelled off for now. Unfortunately, however, mental health symptoms, especially among young people and young adults, have remained at a higher level than before the coronavirus pandemic,” she said.

However, Korhonen-Yrjänheikki highlighted the challenging situation of people over 60, as the number of disability pensions granted to people over 60 has increased by about 50 per cent since 2017.

This, she explained, is driven by the increase in the minimum retirement age and, in particular, the strain caused by physically demanding work. The strain on public healthcare is also reflected in the disability figures.

“A lot has been done in workplaces over the years. We have learned to lighten and modify the work of people at risk of losing their ability to work. These practical measures must be continued in an even more systematic manner.

“Unfortunately, problems in healthcare affect people's situations. Diagnoses and access to treatment can take a long time. At the same time, problems become more serious and returning to work becomes more difficult,” she said.

Last week, Ilmarinen published its disability statistics for 2025, revealing that applications fell by 8 per cent, with declines recorded across all age groups.

The largest year-on-year decrease was among 35–44-year-olds, with applications falling by 12 per cent.

In total, Ilmarinen received around 10,500 new disability pension applications during the year, with around 60 per cent of applicants receiving a positive decision.

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