The pension assets of the earnings-related pension scheme grew in 2016 by 9.4 billion euros, amounting to 190.2 billion euros at year-end. Examine the money flow with the new visualisation of the earnings-related pension money flows.
For the third year in a row, the pension expenditure exceeded the premium income, but the pension assets grew thanks to investment returns.
In 2016, the premium income was 25.4 billion euros, the pension expenditure 26.6 billion euros and the investment returns 10.6 billion euros.
The premium income of the private sector amounted to 15.8 billion euros and the expenses to 16.9 billion euros. The investment returns were 5.9 billion euros. The public sector income and expenditure was 9.6 billion euros and the investment returns 4.7 billion euros.
“The solvency of the pension providers remained at a high level. The investment returns went up and down over the year and, in practice, the final profit was generated in December,” explains Jaakko Aho, Actuarial Manager at the Finnish Centre for Pensions.
The income of the earnings-related pension system are the insurance premiums, the contributions from the Unemployment Insurance Fund and the State’s share of the contributions. The expenses include paid compensations, the overall operating expenses and taxes.
Examine the visualised money flows
This 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. The visualisation has been produced by the Finnish Centre for Pensions in cooperation with Koponen-Hilden, a company specializing in visualisations.
Click the image below to access the visualisation.
Eeva Puuperä, PAYG adviser, eeva.puupera(at)etk.fi, phone: +358 29 411 2525
Jaakko Aho, Actuarial Manager, jaakko.aho(at)etk.fi, phone: +358 40 743 8499