Press releases

The 2025 pension reform in Finland introduces significant changes aimed at ensuring the financial sustainability of the country’s earnings-related pension system. Pensions will continue to accrue as usual, and age limits remain unchanged, but investors in pension assets can now expect better investment returns.

Finnish people extend their working lives faster than estimated. In 2024, people retired on an earnings-related pension at an average age of 63.1 years. The target set for 2025 has already been reached and passed by more than half a year.

According to the calculations of the Finnish Centre for Pensions, the reform strengthens pension financing. Estimated at the contribution level, the overall reform would reduce the pension contributions under the Employees Pensions Act (TyEL) by, on average, 1.5 percentage points. The equity weight will rise which will increase the pension assets. Pensions will be determined as before, and there will be no change to age limits up to 2030.

The earnings-related pension introduced as part of the 2017 pension reform seems to work as planned – as a special pension for those who have worked in arduous jobs for a long time. A study by the Finnish Centre for Pensions shows that years-of-service pensioners have an average working life of 44 years at the age of 63 and have been exposed to physical stress during their working life.

The overall length of careers is growing rather slowly. A new study by the Finnish Centre for Pensions reveals that, for most Finns, working careers have lengthened, but for some, they have become even shorter than before.

Employees’ median monthly earnings were 3,105 euros in 2023, an increase of 4.1 per cent from 2022. Men’s median monthly earnings were over 3,400 euros and women’s over 2,800 euros, according to the Finnish Centre for Pensions’ fresh statistics on wages insured for earnings-related pensions.

This year, Finland ranked seventh in the international Mercer CFA Institute Global Pension Index comparison. Finland dropped one notch compared to 2023. In the integrity sub-index, the Finnish pension system continues to outrank the others.

In the spring of 2024, the Finnish Centre for Pensions launched a mass superivison of wages that have been reported to the Incomes Register but lack pension insurance. Light entrepreneurs were placed under the microscope.

The group of new disability pensioners includes an increasingly higher share of younger people whose income depends on the national pension or other social security benefits. At the same time, the partial disability pension has gained in popularity. For partial disability pensioners, income from work alongside the earnings-related pension is important. A total of 180,000 persons received a disability pension in Finland in 2023.

More than 60 per cent of Finns find employment-based immigration to be a good means to strengthen pension financing if so required. According to the fresh Pension Barometer, the second most popular alternative is to raise pension contributions. Most respondents object to cutting current or future pensions.