Pension policy indicators in concise information package
The review on pension indicators is a compact information package on the state and projected outlook of earnings-related pensions. The package is directed at decision-makers and all interested in the outlook of pension provision. The review includes the most important indicators that depict the current status and predicted development of earnings-related pensions through graphs and ...
Cross-national comparison of pension costs reveals: Lowest contribution levels in Sweden and Finland
The Finnish Centre for Pensions compared pension contribution levels in eight European countries. Pensions cost the least in Sweden and Finland, just over 12 per cent relative to GDP. The highest price tag on pensions is found in Italy and Denmark. Employers pay the main part of pension contributions in all other countries except Denmark.
Size or content of the pie – amount and source of income is related to income perceptions
European pensioners get the main part of their income from pensions, but also from work, capital, and other social benefits than pensions. Our recent study shows that the perceived income adequacy depends not only on the amount but also on the source of income.
Three things to remember when comparing European pension systems
Citizens, journalists and experts enjoy making comparisons which put their national pension systems into a wider context. It is common to compare retirement ages between countries. Although such an exercise can be informative, a simple comparison can result in misunderstandings. Here are three tips to avoid common mistakes.
Inflation and earnings-related pensions
Because of an exceptionally high increase in the earnings-related pension index, the time of retirement matters if it occurs at the turn of the year.
Due to the rapid rise in prices, the earnings-related pension index will grow clearly more than the wage coefficient at the beginning of 2023. As a result, if a person retires in 2022, they will get a higher index increment than if they retire after the turn of the year (in 2023).
Figures and contributions in 2023
The life expectancy coefficient confirmed for 2023 is 0.94419.
The earnings-related pension index is 2874 and the wage coefficient 1.558.
The earnings-related pension insurance contribution of workers in 2023 is 7.15 per cent, and the increased earnings-related pension insurance contribution for 53–62-year-olds is 8.65 per cent.
The earnings-related pension insurance contribution under the Self-employed Persons’ Pensions Act is 24.10 per cent, and the increased earnings-related pension insurance contribution for 53–62-year-olds is 25.60 per cent.
The average earnings-related pension contributions for employers is around 17.4 per cent in 2023.