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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. Agreement reached on YEL reform  – a proposed freedom of choice model for pension contributions
    The Ministry of Social Affairs and Health has released a draft government proposal to reform the Self-Employed Persons’ Pensions Act (YEL). Under the proposed reform, your pension contributions and benefits would be based on either your taxable earned income from your most recent completed tax assessment, or a confirmed income (as today) based on an overall assessment of your work input.
    Read news article Agreement reached on YEL reform  – a proposed freedom of choice model for pension contributions
  2. Pensioner living abroad, answer the country of residence enquiry
    We annually check the information of our pension recipients living abroad, such as their address, because the changed information may have an impact on the payment of the pension.
    Read news article Pensioner living abroad, answer the country of residence enquiry
  3. Ilmarinen's Financial Statements 2025: Return on investments was 8.1 per cent or EUR 5.1 billion
    Ilmarinen’s investment assets increased to EUR 67.5 billion. Solvency continued to strengthen and cost-effectiveness is at a good level. Ilmarinen’s investments have generated a total of EUR 30.2 billion over a period of 10 years. Twenty per cent of the investments are in Finland.
    Read news article Ilmarinen's Financial Statements 2025: Return on investments was 8.1 per cent or EUR 5.1 billion
  4. YEL review: Actual earnings and YEL income side by side as the basis for contributions and pensions
    In the pension sector, a long-awaited solution is emerging to address the challenges of entrepreneurs’ pensions. The Ministry of Social Affairs and Health has published a review by investigator Jukka Rantala, outlining the need to develop the pension system for entrepreneurs.
    Read news article YEL review: Actual earnings and YEL income side by side as the basis for contributions and pensions
  5. Important to know at the turn of the year pensioner
    You can see the amount of your pension for the coming year, the payment dates and information on the amount of tax withholding from the MyPension service on our website at the beginning of December. We will approach our pensioners towards the end of the year via SMS and e-mail, reminding them to view the information online.
    Read news article Important to know at the turn of the year pensioner
  6. 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
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