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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. We are introducing Suomi.fi e-Identification for employers
    We will start using Suomi.fi e-Identification in the employer’s online service as of 19 December 2023. This means that, starting on that date, you will be able to log in to the service using your personal online banking codes or a mobile certificate. For that purpose, you will need either a register role or a mandate granted in Suomi.fi e-Authorizations.
    We are introducing Suomi.fi e-Identification for employers
  2. 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
  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 Interim Report 1 January to 30 June 2022: Premiums written growing strongly, return on investments negative, solvency remained good
    The return on Ilmarinen’s investment portfolio was -6.2 (8.9 per cent), i.e. EUR 3.8 billion negative due to falling stock prices and rising interest rates. The market value of investments fell to EUR 56.7 (60.8) billion. The long-term average return on investments was 5.9 per cent. This corresponds to an annual real return of 4.1 per cent.
    Ilmarinen’s Interim Report 1 January to 30 June 2022: Premiums written growing strongly, return on investments negative, solvency remained good
  5. Ilmarinen’s Interim Report 1 January to 31 March 2022: Premiums written grew, cost-effectiveness improved and solvency remained strong in a challenging market
    The return on Ilmarinen’s investment portfolio was -2.2 (4.8 per cent), i.e. EUR 1.4 billion negative due to falling stock prices and rising interest rates. The market value of investments fell to EUR 59.1 (60.8) billion. The long-term average return on investments was 6.1 per cent. This corresponds to an annual real return of 4.4 per cent.
    Ilmarinen’s Interim Report 1 January to 31 March 2022: Premiums written grew, cost-effectiveness improved and solvency remained strong in a challenging market
  6. Responsibility for pensions is responsibility for the future – Ilmarinen has published its Annual and Sustainability Report 2021
    The carbon intensity of direct listed equity investments decreased and the new Climate Roadmap shows our journey towards a net zero carbon investment portfolio. Ilmarinen’s Annual and Sustainability Report provides information on the impacts that managing your pension security has on the economy, people and the environment.
    Responsibility for pensions is responsibility for the future – Ilmarinen has published its Annual and Sustainability Report 2021
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