Recipes for Systemic Change - Helsinki Design Lab

D4.6 Paying For WelfareFunding of the social welfare delivery system is divided between itstwo tiers and the recipients themselves. As of 2005, the municipalities wereresponsible for approximately 65% of the cost, with the central governmentfunding approximately 25%, and client fees covering the remaining 10%.In total, Finland spends approximately €43.4 billion, about 25% ofGDP, on social welfare. (Facts about Social Welfare and Health Care inFinland 2007) Approximately 30% of total social expenditure goes directlyinto municipal social and healthcare services. The bulk (about 60%) of totalsocial expenditures is used to finance Finland’s comprehensive pension andinsurance schemes.Social Expenditure DistributionSource: "Characteristics of the Social Security System in Finland"D4.7 The Cost Of “Old Age”“Old Age” currently accounts for approximately 30% of total social welfareexpenditure (Facts about Social Welfare and Health Care in Finland2007). “Old age pensioners” currently number close to one million, a figurepredicted to double by 2060. (Statistics Finland Population Project 2009-2060) Elderly care comprises one of the most complex, costly, and criticalfacets of the social welfare system in Finland.299