Information package: Older adults as clients of Kela
This information package outlines the current state of and recent developments in the use of Kela benefits by persons over 65 years of age. At the end, you will find links to Kela’s statistics and ongoing studies on the ageing population. Persons over the age of 65 means here those who are 65 or older.
This information package looks at the following Kela benefits from the perspective of older adults:
- reimbursements for prescription drug costs
- reimbursements for travel costs
- basic social assistance
- care allowance for pensioners
- housing allowance for pensioners.
Participation in rehabilitation services for persons over the age of 65 is examined in a separate information package on rehabilitation and older adults.
Nearly all of those over the age of 65 purchased medicines reimbursable under National Health Insurance
In 2021, a total of 1.23 million people over the age of 65 purchased medicines reimbursable under the Health Insurance Act from pharmacies. This was 97% of the age group. A little over half of them (56%) were women.
Medicines eligible for reimbursement under National Health Insurance were dispensed to persons over 65 years old a little over 34 million times, constituting 59% of all medicine dispensations. A medicine dispensation means one batch of a single medicinal product dispensed by a pharmacy in a single instance.
The total cost of medicines covered by reimbursement was 1.16 billion euros, and Kela paid 841 million euros in reimbursements for them. Of all medicine reimbursements and costs, persons over 65 years old accounted for about half.
The most common reimbursable medicines bought by those over 65 years old were cardiovascular medicines. Medicines in this category were bought by 81% of those who bought reimbursable medicines.
Of all cardiovascular medicines, the most used were
- the beta blocker bisoprolol
- the cholesterol medicine atorvastatin
- amlodipine, which is used to treat coronary heart disease and hypertension.
The second and third most common categories of medicines purchased by persons over 65 years old were medicines that affect the central nervous system (purchased by 54% of those who bought reimbursable medicines) and medicines for gastrointestinal diseases and metabolic disorders (purchased by 51%). Of individual medicines, the pain and fever medicine paracetamol had the most users (406,000 people).
Medicine costs and reimbursements have increased in recent years. This is due to the ageing of the population and new more expensive medicines, for example for the treatment of cancer, entering the market. In 2021, the largest sum (295 million euros) in reimbursements for the age group of those over 65 years old was paid for antineoplastics and immunomodulating agents. The second highest sum in reimbursements was paid for medicines for hematologic conditions (139 million euros), which includes medicines used to prevent blood clots, for example.
Learn more
- Information package: Medicines and the reimbursement system
- Statistics on reimbursements for medical expenses
- Statistical database Kelasto
- Finnish Statistics on Medicines
One in four persons over 65 years old receives reimbursements for travel costs from Kela
Kela is obligated to pay reimbursements for travel costs related to trips to a healthcare or rehabilitation provider.
In 2021, travel cost reimbursements as defined in the Health Insurance Act were provided to 335,173 persons aged 65 or over, i.e. a fourth (26%) of the age group. A majority (56%) of the elderly population who received travel cost reimbursements were women. Those over 65 years old accounted for more than half of all travel cost reimbursement recipients (57%).
Persons over 65 years old received reimbursements for a total of 2,271,235 trips. In 2020, the first year of the COVID-19 pandemic, the total number of trips was slightly smaller (2,039,774). The number of reimbursed trips fell dramatically especially in March-June 2020 when looking at the number of trips by all age groups.
In 2021, the most common destination of a reimbursed trip for those over 65 years old was a public healthcare facility. They were the destination in 93% of trips. Three per cent of trips were to a private healthcare facility, and two per cent to Kela rehabilitation. Public healthcare facilities were the most common destination in all age groups. For example, in the working-age population (30–64 years) 76% of trips were to a public healthcare facility and 18% were to Kela rehabilitation.
Those over the age of 65 who received travel cost reimbursements most commonly used a taxi for their trips (79% of the trips), and so did those of working age. Twenty-four per cent of taxi journeys were made with a wheelchair taxi, and four per cent with a stretcher taxi. The next most common vehicles were an ambulance and own car (13% and 6% of trips). The use of ambulances was especially common among those over 85 years of age. These numbers and the accompanying graph do not include taxi journeys made in the Åland Islands.
Learn more
- Information package: Travel costs
- Statistics on reimbursements for medical expenses
- Statistical database Kelasto
Receiving basic social assistance is rare among those aged over 65
Kela is responsible for the administration and payment of last-resort financial assistance, i.e. basic social assistance.
In 2021, 15,432 persons aged 65 or over received basic social assistance. A little over half of them (55%) were women. The proportion of women is higher the older the recipients observed.
The longer life expectancy of women and their lower level of pensions are likely the explanation for the gender differences in the age group of those over 65 years old. In younger age groups, men account for a larger share of social assistance recipients. Of all recipients, those over 65 years old accounted for 4.1%.
Fewer elderly people received basic social assistance in 2021 than in previous years. In the years 2018 and 2019 their share was 1.4%, and in 2020 it was 1.3%. In 2017, 1.2% received basic social assistance. Administrative responsibility for basic social assistance was transferred from the municipalities to Kela in 2017.
Most of those over 65 years of age who received basic social assistance live alone (83%), as is the case for most other recipients of social assistance, too.
In 2021, the average monthly amount of social assistance for people aged over 65 was 237–301 euros, which is less than the average amount those aged 18 to 64 received (447 euros).
Persons over the age of 65 require basic social assistance more for health-related expenses when compared with younger age groups, and the share of health-related expenses increases with age. On the other hand, social assistance is less often used for housing costs than among younger age groups.
In 2021, the share of basic social assistance directed at health-related expenses was
- 53% (161 euros per month on average) among those 85 years and older
- 37% (105 euros per month on average) among those aged 65–69
- 8% (36 euros per month on average) among those aged 18–64.
In 2021, the share of basic social assistance directed at housing costs was
- 35% (105 euros per month on average) among those 85 years and older
- 41% (115 euros per month on average) among those aged 65–69
- 45% (199 euros per month on average) among those aged 18–64.
Observing the reasons behind the social assistance needs of persons over 65 years old, declining health and growing healthcare expenses as a result of ageing are apparent. In addition, the housing allowance for pensioners offers more comprehensive compensation for housing costs than the general housing allowance.
Learn more
- Kuivalainen S, Ylikännö M. Perustoimeentulotukea saavat vanhuseläkeläiset. In: Korpela T, Heinonen H-M, Laatu M, Raittila S, Ylikännö M (eds.). Ojista allikkoon? Toimeentulotukiuudistuksen ensi metrit. Helsinki: Kela, Special publication 18, 2020, p. 302‒327.
- Tutkimusblogi: toimeentulotuessa tarvitaan edelleen harkintaa
- Information package: Social assistance
- Statistics on basic social assistance
- Statistical database Kelasto
Memory disorders are the most common reason for receiving care allowance for pensioners
The care allowance for pensioners may be granted to a person who is over 16 years old and retired full-time, and whose functional capacity is impaired for at least a year due to a disability or an illness and who, as a result, needs assistance or guidance and supervision. The care allowance is payable at three different rates: care allowance at the basic rate, care allowance at the middle rate and care allowance at the highest rate. Those receiving the allowance at the middle or highest rates may also receive the disability supplement for war veterans.
The care allowance was 71.48 euros per month at the basic rate, 155.72 euros per month at the middle rate, and 329.27 euros per month at the highest rate in 2021. The disability supplement for war veterans was paid at a rate of 107.88 euros per month. The payment rates of benefits linked to the National Pensions Index, such as the care allowance for pensioners, were increased by 3.5 per cent at the beginning of August 2022 by way of exception.
In 2021, care allowance for pensioners was provided to 157,989 persons aged 65 or over, i.e. 13% of the age group. The majority of recipients (63%) were women. In all age groups under 70, the recipients of the allowance were more commonly men. The proportion of women is higher the older the recipients examined are. Of all recipients, those over 65 years old accounted for 76%.
34% of recipients over the age of 65 received the allowance at the basic rate, 44% at the middle rate, and 22% at the highest rate. Those under 75 years old most commonly received the allowance at the basic rate, while those over 75 most commonly received it at the middle rate. Receiving the allowance at the highest rate was especially common among those over 85 years of age.
Memory disorders were the most common reason (34% of recipients) for receiving the allowance. Other common disease categories were circulatory system diseases (18%) and musculoskeletal disorders (11%).
The number of recipients of the care allowance for pensioners has decreased slightly in recent years. For example, in 2017, the care allowance was granted to 166,705 persons over 65 years of age. The decrease in the number of recipients may be due to legislative changes in 2015, after which the allowance has no longer been granted solely on the basis of special expenses.
The disability supplement for war veterans was granted to 812 persons over the age of 65 in 2021. The number of recipients has declined in recent years because the number of people eligible has decreased. For example, in 2017, there were a total of 2,825 recipients.
Ongoing research projects
Learn more
- Eläkettä saavan hoitotuen saajamäärä väheni (helda.helsinki.fi)
- Kelan vammaisetuustilasto
- Statistical database Kelasto
One in ten persons over 65 years old received the housing allowance for pensioners
The housing allowance for pensioners can be granted to those who are over 16 years old, live permanently in Finland, have a low income and receive a pension which entitles them to the housing allowance for pensioners. The housing allowance is available for both rental and owner-occupied homes where the recipient is permanently resident.
135,789 persons over 65 years of age, i.e. 11% of the age group, received the housing allowance for pensioners in December 2021. The majority of the recipients (69%) were women. Of all recipients, persons over 65 years old accounted for 65%.
The recipients most commonly lived in rental housing (69%). 19% of recipients lived in a residential care home or housing service facility, and 8% in owner-occupied housing. The majority (92%) of recipients lived alone. Eight per cent of those who received the allowance lived with their spouse.
The number of recipients of the housing allowance for pensioners increased in the 2010’s. In the age group of persons over 65 years old, the number of recipients increased by 42% between 2010 and 2021. The growth is mainly due to the increase in the size of the age group.
Learn more
- Information package: Housing benefits
- Statistics on general housing allowance
- Statistics on housing allowance for pensioners
- Asumistukimenot uuteen ennätykseen vuonna 2018 (helda.helsinki.fi)
- Statistical database Kelasto
More information on older adults as clients of Kela
Statistics
- Ikääntyvät käyttävät eniten yksityistä hammashuoltoa (helda.helsinki.fi)
- Eläkettä saavan hoitotuen saajamäärä väheni (helda.helsinki.fi)
- Asumistukimenot uuteen ennätykseen vuonna 2018 (helda.helsinki.fi)
Press releases
- Ikääntyvät käyttävät eniten yksityistä hammashoitoa - Tutkimustiedotteet - kela.fi
- Eläkkeelle siirtyminen lisää yksityisten lääkäripalvelujen käyttöä - Tutkimustiedotteet - kela.fi
- Yli 80-vuotiaat asuvat yhä useammin puolison kanssa - Tutkimustiedotteet - kela.fi
Research projects
Contact information
- Medicines: Senior Researcher Heini Kari
- Basic social assistance: Researcher Tuija Korpela
- Care allowance for pensioners: Researcher Pauliina Puurtinen
- Statistics: Statistical Information Service
