Mercer CFA Institute Global Pension Index 2022 was released 11th October

According to the Mercer CFA Institute Global Pension Index 2022, the Finnish pension system ranks well among its Nordic and international peers being the 5th highest ranked this year with regards to the overall score. The high score is because of the good level of adequacy and very high level of integrity of the pension system in the comparison. The level of integrity of the Finnish pension system has been highest among its peers in this comparison at least for the last 9 years. The sustainability of the Finnish pension system instead received a lower score. The sustainability of the system's funding should be increased in the medium and long term. One way to improve the outlook with regards to sustainability would be to raise long-term returns on investments, which would require changes to the current regulatory framework affecting risk-taking of the pension funds. This would reduce the need to raise pension contributions in the future. Many countries have implemented pension reforms that have improved their ratings in this regard. Sustainability especially in the long-term is vital in this current inflationary environment, otherwise the lives of retirees on a fixed rate of income would be negatively affected.

We as the members of CFA Society Finland represent a sizable portion of the portfolio managers and analysts in the Finnish investment community and strive to increase the performance and standards of the investment profession here in Finland. In this capacity we encourage adaption of the pension system to better match the challenges the current environment presents in order to improve the outcomes for the current and future retirees. 

Mr. Toni Iivonen, CFA, President of CFA Society Finland