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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. Ilmarinen’s return on investments 3.3 per cent – employment weakening
    The return on Ilmarinen’s investments in January–September was 3.3 per cent. Measures to improve cost-effectiveness continued. “Last year, we became the most cost-effective company in the industry, measured by the ratio of operating expenses to expense loading components. This year our operating expenses, which are necessary for providing pension security, have decreased further, and we are lowering the price of administrative costs for our customers by 20 per cent,” states President and CEO Jouko Pölönen.
    Ilmarinen’s return on investments 3.3 per cent – employment weakening
  2. Ilmarinen’s administrative cost will decrease 20% in 2024 – As our customer, you benefit right away!
    At the start of next year, Ilmarinen’s administrative cost will decrease by roughly 20 per cent. The administrative cost is part of the TyEL insurance contribution, and in that respect, your TyEL contribution will decrease.
    Ilmarinen’s administrative cost will decrease 20% in 2024 – As our customer, you benefit right away!
  3. Ilmarinen’s Interim Report 1 January to 30 June 2023: Return on investments rose to 3.7 per cent, solvency strengthened and cost-effectiveness continued to improve
    The return on Ilmarinen’s investment portfolio was 3.7 (-6.2) per cent, i.e. EUR 2.1 billion. The market value of investments grew to EUR 58.2 (56.3) billion. The long-term average return on investments was 5.8 per cent as of 1997. This corresponds to an annual real return of 3.8 per cent.
    Ilmarinen’s Interim Report 1 January to 30 June 2023: Return on investments rose to 3.7 per cent, solvency strengthened and cost-effectiveness continued to improve
  4. EU Framework agreement on cross-border telework 1.7.2023
    Some of the EU countries have signed an agreement on cross-border teleworking, according to which an employee working remotely or in-person in two EU countries can, under certain conditions, be insured in the employer's home country instead of their own country of residence.
    EU Framework agreement on cross-border telework 1.7.2023
  5. Ilmarinen as an anchor investor in European climate fund
    Ilmarinen continues its investment strategy that has a strong focus on climate change by investing EUR 580 million in a new European equity fund which selects investees based on climate indicators.
    Ilmarinen as an anchor investor in European climate fund
  6. Self-employed person, did you get a YEL income recommendation from us?
    We will be sending out new YEL income recommendations for the first group of our self-employed customers in June. What’s it all about?
    Self-employed person, did you get a YEL income recommendation from us?
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