Finnish earnings-related pension provider Varma has revealed it is paying out 23 per cent more in customer bonuses than the second-most solvent pension provider in the country.

Varma has a long history as the most solvent occupational pension company in Finland, which means its customer bonuses are also the highest in the industry. Client bonuses are paid out once a year in the spring, and this year amounted to €170m for Varma, up from €142m in 2024.

As of 2023, the amount distributed as a client bonus is based on the solvency of the earnings-related pension insurance company. Client bonuses are usually allocated as a discount on a customer’s future contributions.

“Last year, Varma's return on investment was 10.2 per cent. This increased our investment assets to €64.4bn and further strengthened our position as the most solvent occupational pension company. In terms of solvency, the gap to the next largest occupational pension fund is now at an all-time high,” Varma stated.

Another factor affecting the TyEL contribution per customer is the management cost contribution based on the efficiency of the occupational pension company. This year, Varma’s management fee decreased by up to 20 per cent, depending on the size of the company.

“Last year, we maintained our position as the most efficient occupational pension company and managed to reduce our operating expenses covered by management fees by 6 per cent, the highest in the industry,” it stated.

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