Earnings-related pensions grew to 275 billion euros
The assets of the Finnish earnings-related pension system increased by about 20 billion euros in 2024. The growth is due to investment returns. Insurance contribution income increased by more than half a billion euros.
The assets of the Finnish earnings-related pension scheme were 275 billion euros at the end of 2024. The amount grew from 2023 by 20 billion euros, or by nearly 8 per cent. Pension providers received more than 23 billion euros in investment returns.
“The earnings-related pension funds have grown quite well in a few years. Over the past two years, funds have grown by more than 13 per cent in nominal terms, mathematician Henna Iire of the Finnish Centre for Pensions says.
Private sector pension assets were 174 billion euros and public sector pension assets 100 billion euros at the end of 2024.
Pension assets include all assets intended to cover earnings-related pension obligations. Investment capital is the main component of pension assets. Outstanding insurance contributions are included in the pension assets.
36.3 billion euros pension out in pensions
The role of pension assets in pension financing continues to grow. In 2024, about 6.9 billion euros of pension assets were used to pay earnings-related pensions, up by 21 per cent compared to 2023.
In 2024, earnings-related pensions were paid to the amount of 36.3 billion euros, up by 7 per cent from 2023. The total pension expenditure grew by 2.4 billion, which was mainly due to indexation of pensions in payment.
Iire estimates that the growth of the total amount of pensions paid will level off this year.
“The earnings-related pension index increases earnings-related pensions in payment with around 1.3 per cent in 2025. The index increase in 2024 was 5.7 per cent and in 2023, 6.8 per cent
Income from pension contributions 27.6 billion
The earnings-related pension system recorded an income of 33.1 billion euros in 2024, of which 27.6 billion euros were in the form of insurance contributions. Compared to 2023, the pension contribution income increased by 0.7 billion euros.
“In 2024, the development of the wage sum was more moderate than in the previous few years due to a weak economic downturn. This year, the increase in wages and salaries is expected to be slightly better than last year”, Iire explains.
The fee reduction granted due to the corona pandemic in 2020 will be repaid this year, as well. The return amounted to 0.41 percentage points in 2024, and in 2025, it is 0.45 percentage points.
Figures for 2024 are preliminary
The income of the earnings-related pension system consists of pension contributions, the Employment Fund’s contribution and State contributions. Expenditure consists of pensions, total operating costs and taxes.
The figures are preliminary at this point. The exact figures will be presented in June when a wider range of statistics on the money flow are available.
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