2025 Pension reform
According to the calculations of the Finnish Centre for Pensions, the reform strengthens pension financing. Estimated at the contribution level, the overall reform would reduce the pension contributions under the Employees Pensions Act (TyEL) by, on average, 1.5 percentage points. The equity weight will rise which will increase the pension assets.
Pensions will be determined as before, and there will be no change to age limits up to 2030.
Key actions
The reform
- aims to increase the investment returns on pension assets by changing the investment regulations that apply to private sector earnings-related pension providers;
- includes an agreement on a contribution rate of 24.4% for private sector earnings-related pensions (TyEL) for the period from 2026 to 2030;
- includes an inflation stabiliser that curbs index adjustments to earnings-related pensions if the earnings-related pension index increases faster than the wage coefficient over a two-year period;
- does not change current pension benefits, such as the retirement age and pension accrual rates.
Read more: etk.fi / Pension reform