Mental health issues drive 37% rise in young Finns claiming disability pensions

A growing number of young Finns are leaving the workforce due to mental health issues, with disability pension claims from under-35s rising 37 per cent at pension provider Elo since 2018.

The “phenomenon” seen in Elo is one experienced across the Finnish pensions sector, but according to Elo director of work ability, Kati Korhonen-Yrjänheikki, it shows no signs of waning.

Indeed, Elo’s data revealed that in the first half of 2025, most disability pensions based on mental health were granted to people under 35.

Interestingly, however, while a noticeable rise has been observed among younger people, overall, last year saw a decrease in the number of disability pension claimants.

Figures provided by the Finnish Centre for Pensions (ETK) found that in 2024, 17,500 people retired on disability pensions, a 1 per cent decrease from the previous year.

Nonetheless, while the vast majority of young adults are doing well in the workforce, Korhonen-Yrjänheikki noted that a significant group is struggling to enter or remain employed.

According to Elo, anxiety accounts for 50 per cent of the diagnoses given to the under-35s who apply to the provider for a disability pension.

Korhonen-Yrjänheikki expressed concern that today’s young adults may face greater emotional strain than previous generations, leaving them more “vulnerable” to adversity.

The accelerating pace of working life, global political uncertainty, climate change and a weak economic outlook were cited by Elo as contributors to the rise in anxiety.

However, one of Korhonen-Yrjänheikki’s main worries for young adults is the ability to find employment. She believes the “experience of failure and constant insecurity is poison for young people”, leading to a rising number of young adults on antidepressants.

Despite this difficulty in securing employment, she further highlighted the “contradiction” in the workforce, where entry-level jobs have become more demanding, while the work experience required for these jobs is becoming increasingly difficult to accumulate.

She is therefore calling on workplaces to take on “greater responsibility” for young people in terms of training and life management support.

Flexibility is also more desirable to younger workers, so employers need to recognise that many young workers are no longer willing to sacrifice their entire lives for work – a choice Korhonen-Yrjänheikki describes as “perfectly valid”.

“However, this is a big change that requires discussion in work communities and a rethinking of everyone's values and attitudes," she concluded.



Share Story:

Recent Stories


Podcast: Stepping up to the challenge
In the latest European Pensions podcast, Natalie Tuck talks to PensionsEurope chair, Jerry Moriarty, about his new role and the European pension policy agenda

Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows