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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 3.2 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
  2. Ilmarinen’s Financial Statements 2023: Return on investments was 5.8 per cent and cost-effectiveness improved further
    Ilmarinen’s return on investments was 5.8 per cent and cost-effectiveness improved further, as premiums written grew 4 per cent and operating expenses financed using loading income fell 5 per cent. Our customers benefit directly from the improvement in our efficiency: we lowered the administrative cost component included in Ilmarinen’s earnings-related pension insurance contribution by 20 per cent as of the start of 2024.
    Ilmarinen’s Financial Statements 2023: Return on investments was 5.8 per cent and cost-effectiveness improved further
  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. Ilmarinen’s financial statements 2021: Investment assets and solvency capital rose to record levels and strong development continued in customer acquisition and in improving cost effectiveness
    Ilmarinen’s return on investments was 15.3 per cent, or EUR 8.1 billion. The value of investment assets rose to an all-time high, at EUR 60,8 billion, and solvency strengthened.
    Ilmarinen’s financial statements 2021: Investment assets and solvency capital rose to record levels and strong development continued in customer acquisition and in improving cost effectiveness
  5. Ilmarinen’s Interim Report 1 January to 30 June 2020: Coronavirus causes return on investments to fluctuate, cost-effectiveness of operations improved as expected
    The total result for Ilmarinen’s H1 was EUR –1,099 million (EUR 931 million 1 Jan–30 Jun 2019) due to the slump in return on investments caused by the coronavirus early in the year.
    Ilmarinen’s Interim Report 1 January to 30 June 2020: Coronavirus causes return on investments to fluctuate, cost-effectiveness of operations improved as expected
  6. Ilmarinen in 2019: Decade's best investment return, continued growth and improved efficiency
    Ilmarinen’s return on investments was 11.8 per cent, the value of investment assets rose to more than EUR 50 billion and solvency strengthened. The customer base grew, costs decreased, cost-effectiveness improved and client bonuses will rise to a record level. The Financial Supervisory Authority specified the guidelines concerning the management of disability risk, due to which Ilmarinen will initiate co-determination negotiations related to these plans.
    Ilmarinen in 2019: Decade's best investment return, continued growth and improved efficiency
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