The Finnish earnings-related pension index will be 3077 in 2025, increasing pensions by 1.31 per cent at the turn of the year, the Finnish Centre for Pensions (ETK) has said.

This follows confirmation from the Finnish Ministry of Social Affairs and Health of the 2025 indexes for earnings-related pensions.

Alongside the pension index adjustment, the wage coefficient will also rise to 1.637 next year, 2.9 per cent higher than the current year.

The earnings-related pension index is used to adjust pensions in payment annually to secure their purchasing power.

Meanwhile, at the time of retirement, the wage coefficient adjusts career lifetime earnings to the level of the year in which the pension begun.

The weightings of the index adjustments are based on changes in consumer price and earnings level indexes calculated by Statistics Finland.

The earnings-related pension index puts greater weight on price development while the wage coefficient emphasises earnings development.

Commenting on this, ETK economist, Timopekka Hakola, said: “The level of index adjustments indicates a return to normal.

“After a few exceptional years, we are returning to moderate increases, and the wage coefficient will once again grow more than the earnings-related pension index.”

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