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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 financial statements 2022: Premiums written grew strongly and cost-effectiveness improved to a record level, return on investments -6.6 per cent and continued strong solvency
    “2022 was a year of strong growth and improvement of effectiveness for Ilmarinen. Premiums written grew by as much as 11 per cent and cost-effectiveness improved to a record level. At the same time, the operating environment in the investment markets was very challenging. Russia’s war of aggression in Ukraine, Europe’s energy crisis, accelerated inflation and rapidly tightening central bank monetary policy cast a shadow over the economic outlook, broadly reducing investment market returns. Ilmarinen’s return on investments was negative, but solvency remained strong,” says Ilmarinen’s President and CEO Jouko Pölönen.
    Ilmarinen’s financial statements 2022: Premiums written grew strongly and cost-effectiveness improved to a record level, return on investments -6.6 per cent and continued strong solvency
  2. Ilmarinen adopts new climate benchmarks
    Ilmarinen will introduce climate benchmark indices from 2023 onwards. "We have long used ESG benchmark indices in equity investments, but they are not enough to steer our portfolio towards carbon neutrality. That's why we need a new solution," says Mikko Mursula, Deputy CEO.
    Ilmarinen adopts new climate benchmarks
  3. Ilmarinen expands its climate targets
    Ilmarinen sets climate targets on two new asset classes: corporate bonds and foreign real estate. Plans are already in place for direct listed equity investments and Finnish real estate.
    Ilmarinen expands its climate targets
  4. We are participating in the power system support procedure
    The transmission system operator Fingrid developed a voluntary power system support procedure. Ilmarinen is taking part. If the procedure is activated, it may have a momentary impact on properties’ conditions.
    We are participating in the power system support procedure
  5. YEL reform enters into force at the start of next year
    The Self-Employed Persons’ Pensions Act will change at the start of the year: YEL income will be determined in more detail and adjusted more often. “Self-employed persons deserve the same level of pension and social security as employees. The reform will help achieve this,” says Minna Hakkarainen, Ilmarinen’s Director, Insurance Services.
    YEL reform enters into force at the start of next year
  6. Most frequently asked questions on the YEL reform
    What questions are self-employed persons asking about the Self-Employed Persons’ Pensions Act (YEL) reform? We assembled all of the questions most frequently asked by self-employed persons. The expert for the article is Ilmarinen’s Director, Insurance Services, Minna Hakkarainen.
    Most frequently asked questions on the YEL reform
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