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Article 28.4.2022

Finnish pension system in a nutshell

Finland has one of the best pension systems in the world - and that’s a fact. But if you’re starting a business in Finland, you might be wondering why it’s mandatory for entrepreneurs to take out pension insurance. Or for employers to get pension insurance for their employees? We are here to help you!

Finnish pension system in a nutshell
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  1. Employer, self-employed person, pensioner – 2025 earnings-related pension index and wage coefficient confirmed
    The Ministry for Social Affairs and Health has confirmed the indices for earnings-related pension insurance for 2025. Next year, the earnings-related pension index is 3077, which means an approximately 1.3 per cent increase on pensions at the start of the year. The confirmed wage coefficient is 1.673. Compared to 2024, the wage coefficient will rise some 2.2 per cent.
    Employer, self-employed person, pensioner – 2025 earnings-related pension index and wage coefficient confirmed
  2. Ilmarinen's return on investment rose to 7.4 per cent, solvency strengthened and cost efficiency improved
    Ilmarinen's return on investment in the period January–September was 7.4 per cent, or EUR 4.4 billion. Investment assets rose to EUR 62.9 billion and solvency capital to EUR 14 billion. Cost effectiveness continued to improve and is reflected in lower premiums for customers.
    Ilmarinen's return on investment rose to 7.4 per cent, solvency strengthened and cost efficiency improved
  3. Ilmarinen’s administrative cost will decrease in 2025
    At the start of next year, Ilmarinen’s customers’ administrative cost will decrease by roughly 10 per cent. The administrative cost is part of the TyEL insurance contribution, and in that respect, your TyEL contribution as our customer will decrease.
    Ilmarinen’s administrative cost will decrease in 2025
  4. A diverse workplace is a choice – and a resource
    A diverse community accepts and appreciates differences. Diversity at work is also tightly connected to inclusivity and equality. At IKEA, diversity is an important part of the work community and daily work. The community is easy to join and lets everyone’s voice be heard.
    A diverse workplace is a choice – and a resource
  5. Ilmarinen’s return on investments 3.2 per cent and efficiency improved further
    The return on Ilmarinen’s investments in January–March was 3.2 per cent. The company’s cost-effectiveness improved further as premiums written grew and the operating expenses necessary for providing pension security fell. “We have successfully continued implementing Ilmarinen’s strategy and improved our productivity significantly over the past six years,” says Ilmarinen’s CEO Jouko Pölönen.
    Ilmarinen’s return on investments 3.2 per cent and efficiency improved further
  6. Coming this year: electronic YEL invoices to be sent automatically
    In future, we will be sending electronic YEL invoices automatically if the payer of the invoice is a company that receives online invoices.
    Coming this year: electronic YEL invoices to be sent automatically
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