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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. Karoliina Lindroos appointed as Ilmarinen’s Head of Responsible Investments
    Karoliina Lindroos, M.Sc. (Agriculture and Forestry), brings to the position of Ilmarinen’s Head of Responsible Investments her solid expertise in the assessment of environmental and human rights risks related to investees.
    Read news article Karoliina Lindroos appointed as Ilmarinen’s Head of Responsible Investments
  2. 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.
    Read news article Ilmarinen’s Interim Report 1 January to 30 June 2020: Coronavirus causes return on investments to fluctuate, cost-effectiveness of operations improved as expected
  3. Ilmarinen’s interim report 1 January–31 March 2020: The coronavirus pushed investment returns 7.5% below zero, cost-effectiveness improved further
    Ilmarinen’s Q1 total result slid into negative territory, to EUR -2,649 million (EUR 744 million in 1 Jan–31 Mar 2019), due to the low return on investments resulting from the coronavirus pandemic. Operating expenses decreased EUR 4 million and the ratio of operating expenses to expense loading components improved to 69.0 (71.5) per cent.
    Read news article Ilmarinen’s interim report 1 January–31 March 2020: The coronavirus pushed investment returns 7.5% below zero, cost-effectiveness improved further
  4. Reduction in employer’s TyEL contributions for the rest of the year
    The law draft to reduce the employer’s TyEL contribution by 2.6 percentage points for the period between 1 May and 31 Dec 2020 was passed earlier this month. The law will come into effect on 1 May 2020.
    Read news article Reduction in employer’s TyEL contributions for the rest of the year
  5. “Pension cover concerns us all” – Read the report to find out how we managed your pension cover in 2019
    Ilmarinen’s annual and sustainability report provides a full view into how we managed your pension cover in 2019. In addition, it sheds some light on how pension cover influences practically each and every person living in Finland in various life situations.
    Read news article “Pension cover concerns us all” – Read the report to find out how we managed your pension cover in 2019
  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.
    Read news article Ilmarinen in 2019: Decade's best investment return, continued growth and improved efficiency
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