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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. 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.
    Ilmarinen’s cost-effectiveness continues to guarantee our customers affordable TyEL contributions
  2. 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
  3. The first quarter in Ilmarinen: Return on investments was 0.2 per cent, solvency was strong, and cost-effectiveness improved
    Ilmarinen’s return on investments was 0.2 per cent, investment assets EUR 63.1 billion and solvency capital EUR 13.7 billion. Strong solvency enables the long-term investment of pension assets in an unstable market situation undermined by the trade war.
    The first quarter in Ilmarinen: Return on investments was 0.2 per cent, solvency was strong, and cost-effectiveness improved
  4. Ilmarinen's Financial Statements 2024: The return on investments was 8.6 per cent, or EUR 5 billion – solvency strengthened and efficiency improved
    Ilmarinen’s return on investments was 8.6 per cent, and cost-effectiveness was further improved. Premiums written grew by 2 per cent and operating expenses financed using loading income fell by 2 per cent.
    Ilmarinen's Financial Statements 2024: The return on investments was 8.6 per cent, or EUR 5 billion – solvency strengthened and efficiency improved
  5. Ilmarinen's return on investment rose to 7.4 per cent, solvency strengthened and cost efficiency improved
    Ilmarinen's return on investment in the period January–September was 7.4 per cent, or EUR 4.4 billion. Investment assets rose to EUR 62.9 billion and solvency capital to EUR 14 billion. Cost effectiveness continued to improve and is reflected in lower premiums for customers.
    Ilmarinen's return on investment rose to 7.4 per cent, solvency strengthened and cost efficiency improved
  6. Ilmarinen's return on investment 4.9 per cent, and market uncertainty increased
    In January–June, Ilmarinen's return on investment was 4.9% and its solvency strengthened. Cost-effectiveness continued to improve as premiums written grew 2 per cent and pension cover operating expenses fell 6 per cent.
    Ilmarinen's return on investment 4.9 per cent, and market uncertainty increased
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