“Old Age” currently accounts for approximately 30% of total social welfare expenditure (Facts about Social Welfare and Health Care in Finland 2007). “Old age pensioners” currently number close to one million, a figure predicted to double by 2060. (Statistics Finland Population Project 2009- 2060) Elderly care comprises one of the most complex, costly, and critical facets of the social welfare system in Finland.
Funding of the social welfare delivery system is divided between its two tiers and the recipients themselves. As of 2005, the municipalities were responsible for approximately 65% of the cost, with the central government funding approximately 25%, and client fees covering the remaining 10%.
In total, Finland spends approximately €43.4 billion, about 25% of GDP, on social welfare. (Facts about Social Welfare and Health Care in Finland 2007) Approximately 30% of total social expenditure goes directly into municipal social and healthcare services. The bulk (about 60%) of total social expenditures is used to finance Finland’s comprehensive pension and insurance schemes.
