FINLAND BACK IN TOP FIVE
- The Finnish pension system ranked fifth in the international Global Pension Index comparison.
- Finland benefited from the change in the comparison’s calculation method. For the second time in a row, Iceland’s pension system was ranked the best in the world.
- Finland received the highest index value in the sub-index of integrity (reliable and transparent governance) for the ninth time in a row.
Finland improved its total score from last year and ranked fifth in the Mercer CFA Institute Global Pension Index (MCGPI), an annually compiled international comparison of pension systems. Last year, Finland ranked seventh.
“The high quality of the Finnish pension system was proven once more. From a citizen’s point of view, the system is straightforward and transparent. The developments made to the system over the decades have mostly been successful”, comments Finance Finland’s Director of Pensions Mikko Kuusela.
Carried out for the fourteenth time this year, the comparison included 44 retirement income systems that offer pensions to more than four billion people. The MCGPI assesses the pension systems of various countries in terms of their adequacy, sustainability, and integrity.
The Nordic systems are highly advanced: all five countries were among the top ten in the comparison.
Finland’s total score and ranking improved by two places, recovering from the drop in 2021. This year’s comparison used revised scoring, which gives more weight to countries with strong earnings-related pensions. Finland benefited from the change in the calculation method.
From a citizen’s point of view, the Finnish pension system is straightforward and transparent. The accrued pension follows despite change of workplace, and the accrued amount can be checked at any time on the pension record.
Reliability and transparency are Finland’s biggest assets
MCGPI lists the following as means to increase the overall index value for the Finnish pension system: raising minimum pensions, raising the level of household saving, increasing the funded component of pension contributions and improving the labour force participation rate of the older population.
“The Finnish pension system proved its strength once more despite the criticism it has received in public debate. Increasing adequacy and improving sustainability are supportable but also conflicting aims”, Kuusela notes.