Assets in the Finnish earnings-related pension system declined by €16bn in 2022, according to the Finnish Centre for Pensions (ETK).

The country’s earnings-related pension assets fell from €259bn at the end of 2021 to €243bn at the end of 2022.

Private sector pension assets accounted for €154bn of the total, while public sector pension assets stood at €89bn.

Investment losses counted for the majority of the decline, with €14.9bn of investment losses recorded during the year.

Meanwhile, insurance contribution income increased by almost €2bn.

Earnings-related pension contributions rose by €1.8bn to €25.9bn, while €31.4bn was paid out through pension claims, an increase of €1bn.

The earnings-related pension system showed an income of €30.7bn during the year.

The system’s income consists of pension contributions, the Employment Fund’s contribution, and state contributions.

The expenditure consists of pensions, total operating expenses and taxes.

“The increase in insurance contributions is due to both a rising wage sum and the repayment of the temporary reduction of contributions under the Employees Pensions Act due to the corona pandemic,” commented ETK mathematician, Henna Iire.

“The repayment has been scheduled for 2022–2025. This year the expenditure is expected to grow briskly due to the index increases at the beginning of the year.

“The inflation that is underlying the index development will soon be reflected in the pension expenditure.”

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