Importance of work and diagnosis for economic well-being of disability pensioners

Abstract

Abstract Background Disability pensioners' economic well-being is weaker than that of the same-age population on average. Approximately 80 per cent of the partial disability pensioners continue working alongside a pension. The same figure for full disability pensioners is 10 per cent. The aim of this study was to examine how working alongside a pension and how the cause of disability are associated with partial and full disability pensioners' economic well-being. Methods The data consisted of longitudinal register-based (100% sample of Finns) data from Statistics Finland and the Finnish Centre for Pensions. The data included 18,291 partial disability pensioners and 116,376 full disability pensioners aged 30-62 who were on a disability pension in 2017 and had received a disability pension for at least two years. Economic well-being was measured via disposable income. Linear regression analysis was used to analyze the economic well-being of disability pensioners. Results In 2017, the disposable income of disability pensioners who were working alongside a pension was, on average, 50 per cent higher than that of non-working disability pensioners. The median income from work was approximately 16,700 euros/year for working partial disability pensioners and 11,100 euros/year for working full disability pensioners. Adjusted regression models showed that working alongside a pension was associated with a higher economic well-being. Disability pensioners with a mental diagnosis, on the other hand, were working less often and had a lower economic well-being than others. Conclusions Working alongside a disability pension has a positive effect on the economic well-being of disability pensioners. Mental diagnosis, on the other hand, often leads to a lower income. Key messages Disability pensioners who work alongside a pension have a higher economic well-being than their non-working counterparts. Mental diagnosis was associated with working less often alongside a disability pension and a weaker economic well-being of disability pensioners.