Money Flows
In addition to pension contributions charged from employers, employees and the self-employed, earnings-related pensions are also financed through payments into the earnings-related pension scheme from unemployment insurance contributions, state shares and earnings-related pension assets as well as investment profits from said assets.
Employers disburse pension contributions based on the earnings of their employees to their own pension providers, who use them to finance earnings-related pensions currently on their responsibility and, on the other hand, prepare for the payment of future pensions by funding payments. The self-employed and farming entrepreneurs pay their own pension contributions directly to the pension provider.
The Employment Fund compensates the pension providers for costs arising from employees’ unemployment and training allowances and pension accrual based on alternation leave. All pension providers participate in the costs arising from accrued pension shares from unsalaried periods of allowance. Additionally, the State reimburses the pension providers for benefits paid during periods of study and periods of child-care.
The earnings-related pension system’s assets increased in 2024 with around 20 billion euros. Total assets at year-end were 275 billion euros. The increase in pension assets for 2024 was mainly due to investment profits. They amounted to 23.2 billion euros. Pension assets include assets intended to cover earnings-related pension liabilities. The largest portion of pension assets comprises investment capital. Pension assets also include contribution claims. Contribution claims include contributions that fall due after the turn of the year and outstanding contributions. The figures for 2024 are preliminary. The final figures will be published and entered into the visualisation and the statistical database in June, when we have compiled the figures from the financial statements of all pension providers.
The visualisation of the earnings-related pension money flows illustrates the assets of the earnings-related pension system and their flows in given years.
The user can select the desired year and examine how the earnings-related assets flowed in that year. Click the link below to access the visualisation.
Link to access the visualisation
In addition to paying earnings-related pensions, pension contributions collected are funded and used to pay the maintenance and business costs of the pension providers. Such costs include, for example, costs arising from pension provider operations such as wages, commissions and additional personnel expenses. Costs arising from the investment operations of a pension provider are not included in the operating costs.
Earnings-related pension providers have mainly invested their pension assets in shares, bonds and real estate, both domestic and foreign. More detailed information on the investment operations of statutory pension assets is available on, for example, the website of the Finnish Pension Alliance TELA.
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