Comparison of contribution levels

As a rule, comparisons of pension contributions and expenditure include only statutory pensions. In most European countries, however, labour market supplementary pensions form a considerable part of the total pension.

A comparison that covers only statutory pensions is problematic in particular from Finland’s point of view. Supplementary pension schemes are rare in Finland and, as the accrual of statutory earnings-related pension of wage earners is in no way limited by earnings or pension ceilings, nearly all pension contributions paid are statutory.

A more realistic and, from the point of view of the Finnish scheme, a more comparable view of the total contribution burden in different countries is achieved by reviewing the combined contribution levels of both statutory and labour market supplementary pensions.

The Finnish Centre for Pensions’ comparison of contribution levels offers a view of the overall pension contribution burden in different countries, taking into account not only statutory pension contributions but also contributions for supplementary pensions and the State’s share in pension financing.

The comparison shows that when supplementary pensions are excluded from the study, the view of the overall pension contribution burden in different countries is misleading. From the point of view of the comparison, the central result is that the countries’ contribution levels are becoming more uniform when the comparison includes not only statutory contributions but the overall contribution burden of the pension schemes.

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Pension contribution incomeThe Finnish Centre for Pensions has compared international pension contribution levels since the early 2000s. Previous publications are listed below.