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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. ​​Greenhouse gas emissions of Ilmarinen’s pension investments decreased significantly​
    The carbon intensity of Ilmarinen’s listed investments decreased significantly from 2020. This is reflected in Ilmarinen’s first statutory sustainability report. “We have systematically implemented measures in line with our climate roadmap, and this has produced results,” says Karoliina Lindroos, Head of Responsible Investments at Ilmarinen.
    ​​Greenhouse gas emissions of Ilmarinen’s pension investments decreased significantly​
  2. The first quarter in Ilmarinen: Return on investments was 0.2 per cent, solvency was strong, and cost-effectiveness improved
    Ilmarinen’s return on investments was 0.2 per cent, investment assets EUR 63.1 billion and solvency capital EUR 13.7 billion. Strong solvency enables the long-term investment of pension assets in an unstable market situation undermined by the trade war.
    The first quarter in Ilmarinen: Return on investments was 0.2 per cent, solvency was strong, and cost-effectiveness improved
  3. Pensioner living abroad, answer the country of residence enquiry
    We annually check the information of our pension recipients living abroad, such as their address, because the changed information may have an impact on the payment of the pension.
    Pensioner living abroad, answer the country of residence enquiry
  4. Ilmarinen's Financial Statements 2024: The return on investments was 8.6 per cent, or EUR 5 billion – solvency strengthened and efficiency improved
    Ilmarinen’s return on investments was 8.6 per cent, and cost-effectiveness was further improved. Premiums written grew by 2 per cent and operating expenses financed using loading income fell by 2 per cent.
    Ilmarinen's Financial Statements 2024: The return on investments was 8.6 per cent, or EUR 5 billion – solvency strengthened and efficiency improved
  5. Earnings-related pension insurance contributions for 2025 confirmed
    The Ministry for Social Affairs and Health has confirmed the earnings-related pension insurance contributions for 2025. The average contribution for employer’s pension insurance (TyEL) is 24.85 per cent of the payroll in 2025.
    Earnings-related pension insurance contributions for 2025 confirmed
  6. Pensioner, the 2025 tax card goes into effect already in January
    Next year, tax cards for pensioners and employees will enter into force as early as 1 January 2025. The change will come into effect automatically for our pensioners, and you don't have to worry about it.
    Pensioner, the 2025 tax card goes into effect already in January
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