The role of pension assets in the financing of Finnish earnings-related pensions continued to grow in 2024, with €6.9bn used to pay pensions, a 21 per cent increase compared to 2023, according to the Finnish Centre for Pensions (ETK).

In 2024, €36.3bn was paid in pensions from the earnings-related pension system, up 7 per cent from 2023. The total pension expenditure grew by €2.4bn, mainly due to the indexation of pensions in payment.

However, ETK mathematician, Henna 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 by around 1.3 per cent in 2025. The index increase in 2024 was 5.7 per cent and in 2023, 6.8 per cent,” she said.

In total the assets of the Finnish earnings-related pension system increased by around €20bn in 2024, equivalent to 8 per cent and rising to €275bn, ETK figures show.

“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,” Iire said.

Private sector pension assets amounted to €174bnand public sector pension assets €100bn 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 but outstanding insurance contributions are also included as pension assets.

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