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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. 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.
    Important to know at the turn of the year pensioner
  2. 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.
    EPSI Rating: Ilmarinen has the most satisfied customers in the pension sector
  3. 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.
    Employer, self-employed person, pensioner – 2026 earnings-related pension index and wage coefficient confirmed
  4. Return on Ilmarinen’s investments was 2.1 per cent – solvency was strong and cost-effectiveness at a good level
    The return on Ilmarinen’s investments was 2.1 per cent in January–June, or EUR 1.3 billion. Investment assets increased to EUR 64.0 billion and solvency capital to EUR 14.0 billion. This cost-effectiveness translates into lower premiums for clients.
    Return on Ilmarinen’s investments was 2.1 per cent – solvency was strong and cost-effectiveness at a good level
  5. 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.
    Pensioner living abroad, answer the country of residence enquiry
  6. Pensioner, the 2025 tax card goes into effect already in January
    Next year, tax cards for pensioners and employees will enter into force as early as 1 January 2025. The change will come into effect automatically for our pensioners, and you don't have to worry about it.
    Pensioner, the 2025 tax card goes into effect already in January
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