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Finnish pension system in a nutshell

Article 28.4.2022

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. The upper age limits for TyEL and YEL insurance will change in 2026
    The 2017 pension reform set an upper age limit for TyEL and YEL insurance based on the year of birth. The change will have an impact from the beginning of 2026, when those born in 1958 and younger are insured and will continue to accrue pensions in 2026.
    Read news article The upper age limits for TyEL and YEL insurance will change in 2026
  2. Did you get a call from Ilmarinen regarding your customer information?
    To provide you with the best customer service that is relevant to your situation, we need to know you. We are contacting our customers about customer information. We regularly update customer information required by law.
    Read news article Did you get a call from Ilmarinen regarding your customer information?
  3. EPSI Rating: Ilmarinen has the most satisfied customers in the pension sector
    Ilmarinen’s customers are the most satisfied in the earnings-related pension industry, shows a recent study by EPSI Rating.
    Read news article EPSI Rating: Ilmarinen has the most satisfied customers in the pension sector
  4. Employer, self-employed person, pensioner – 2026 earnings-related pension index and wage coefficient confirmed
    The Ministry for Social Affairs and Health has confirmed the indices for earnings-related pension insurance for 2026. Next year, the earnings-related pension index is 3104, which means an approximately 0.9 per cent increase on pensions at the start of the year. The confirmed wage coefficient is 1.712. Compared to 2025, the wage coefficient will rise some 2.3 per cent.
    Read news article Employer, self-employed person, pensioner – 2026 earnings-related pension index and wage coefficient confirmed
  5. Return on Ilmarinen’s investments was 4.8 per cent – solvency was at a good level
    The return on Ilmarinen’s investments was 4.8 per cent in January–September, or EUR 3.0 billion. Investment assets reached record levels and solvency was strengthened.
    Read news article Return on Ilmarinen’s investments was 4.8 per cent – solvency was at a good level
  6. Ilmarinen’s cost-effectiveness continues to guarantee our customers affordable TyEL contributions
    In 2026, the administrative costs of Ilmarinen’s customers will be no more than 0.18 per cent of the payroll. We have made our operations more efficient every year, which means that Ilmarinen’s customers can continue enjoying affordable TyEL contributions when it comes to the administrative cost. The administrative cost is part of the TyEL insurance contribution.
    Read news article Ilmarinen’s cost-effectiveness continues to guarantee our customers affordable TyEL contributions
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