Financing of Pensions
In Finland, earnings-related pensions are financed according to the pay-as-you-go (PAYG) principle and the partial funding principle. For the main part, the pensions paid out in a given year are financed with the pension contributions paid that year. The remaining part is financed with the investment return of the funded pension components.
Examine the earnings-related pension money flows in the visualisation
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 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 increase in pension assets for 2024 was mainly due to investment profits. The return on investments was 23.2 billion euros in 2024. 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 Finnish Centre for Pensions produces time series from the financial statements of the pension providers. The pension providers deliver also figures to the cost division. The financing of pension tables is published yearly in The Finnish Centre for Pensions statistical database.
Assets and cash flows
The cash flows tables present the financing system of the earnings-related pension scheme from 2007. Tables consist figures of pension assets, insurance contributions, contributions of the Employment fund, transfers, state shares, paid claims, overall operating costs and investments returns. More detailed cash flow table of the Employees Pensions Act and Seafarer’s Pension Act (henceforth TyEL and MEL) schemes are shown.
Financial statements figures
The financial statements figures of the pension providers since 2007. Tables consist figures of earnings-related pension insurance, investment operations, paid claims, administrative expenses, technical
provisions and solvency.
Cost division figures
The tables consist figures of paid claims and technical provisions since 2007.
Time series
Statistical database contains time series since 1962 on paid claims, premium income, pension assets, wage sums and numbers of pension providers of the earnings-related pension scheme.
(Updated on 14 March 2025)
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