The Finnish earnings-related pension index will increase by 1.6 per cent in January 2025, the Finnish Centre for Pensions (ETK) has estimated.

This means that a person who retires on an earnings-related pension in 2025 may receive a slightly higher index increment to their pension than someone who retires in 2024.

ETK stated that the time of exceptional indexes was “over”, with the organisation estimating that it will grow less than the wage coefficient.

It forecast that the wage coefficient will increase by 2.1 per cent compared to the previous year in January 2025.

The aim of the earnings-related pension index is to retain the purchasing power of pensions in payment, while the wage coefficient affects starting pensions, bringing the pensioner’s career earnings up to the level of the year of retirement.

Commenting on the forecast, ETK development manager, Heikki Tikanmäki, said: “In the last two years, index adjustments were exceptional, which is why it was financially favourable for some to retire before rather than after the turn of the year.

“Now we are returning to normal. Working longer is more advantageous than retiring.”

The Finnish Ministry of Social Affairs and Health will publish the confirmed earnings-related pension indexes for 2025 at the end of October.

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