Nordic countries are ageing, the average age in the population has increased as has the share of those over the age of 65. The ageing of the population is putting an increasing pressure on the financing of adequate pensions and sufficient long-term care. Typically, Nordic countries are clustered together in social policy analysis. They are seen as frontrunners in ageing policies. It is assumed that their welfare state policies are to a large extent similar, as are the aims of these policies. In this article, I look at Sweden and Finland, two countries that share cultural similarities and whose welfare states have common origins.

For theoretical background I utilize the theoretical model of intergenerational reciprocity as presented by André Masson. Finland’s and Sweden’s welfare model is egalitarian in which the State assumes a central role as the guarantor of equal opportunities for its citizens. Despite the similar background, welfare policies have taken different routes. This article presents an overview of the welfare policies targeted towards the old, namely pensions and long-term care. In both countries the financial sustainability of these welfare state arrangements is being put under pressure by demographic ageing. Increasing levels of immigration has been proposed as a solution to enhance the old age dependency ratio. Yet, the challenges between the countries differ. In Sweden the public pension system is financially sustainable, but the adequacy of pension benefits has become a contested issue. In Finland the financing of pension system is challenged by the rapidly ageing population. In both countries the role of the family in long-term care is expected to increase because State provision is weakening. This could imply a large shift in welfare policies in which previously the State had occupied the central role.