Approximately half of Finnish adults under the age of 30 who have retired on a disability pension have never worked, a study by the Finnish Centre for Pensions (ETK) has found.

ETK senior researcher, Mikko Laaksonen, explained that someone who has retired on a disability pension before the age of 30 has a working life that was, on average, about 40 per cent of that of the rest of the population of the same age.

Indeed, ETK concluded that the careers of those who retire on disability pensions lag behind the comparison group right from the start of adulthood, regardless of the age at which they ultimately begin receiving disability pensions.

"This shows that work ability problems often begin long before people start receiving disability pensions," Laaksonen said.

A majority of disability pensions for people under 30 are given due to mental health problems, but ETK found that these comprise different illnesses that affect someone’s ability to work to varying degrees.

“Depression is the most common reason for disability pensions among people who retire between the ages of 21 and 29. Psychotic disorders also account for a significant proportion of cases.

“With age, somatic, or physical, illnesses account for an increasing proportion of the reasons for disability pensions,” Laaksonen explained.

Of the pensions granted to people under the age of 30, 85 per cent were based on mental health disorders and 15 per cent on somatic reasons.

On the consequences of these figures, ETK explained that young people on a disability pension has “significant implications” for society and the individual.

From a societal perspective, it represents a loss of labour input: the lost working life is long. For the individual, disability often means low income and an increased risk of social exclusion.

According to Laaksonen, a significant proportion of young people are at least partially able to work, but there are few suitable job opportunities for them, especially during a tight economic situation.

“Early support measures are needed for both young people and their families, along with more entry-level jobs and plans for returning to work already during treatment or rehabilitation. In addition, channels such as employment subsidies should be strengthened to enable young people to gain experience that will help them find their place in working life,” Laaksonen suggested.

The study examined people under the age of 30 who had retired on disability pension between 2020 and 2022. There were approximately 8,200 such individuals.

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