Key Takeaways
- • Finland ranked eighth in the 2025 Mercer CFA Institute Global Pension Index, dropping one place from 2024, according to the Finnish Centre for Pensions.
- • Finland retained the top score for pension system integrity (governance, transparency and administrative efficiency), a sub-index it has led for years.
- • Sweden overtook Finland overall for the first time in the comparison, driven by gains in adequacy, sustainability and administrative reliability after recent reforms.
- • Almost all countries in the 52-country index saw score increases, partly due to reforms and changes in indicator methodology.
Summary
Finland's pension system ranked eighth in the 2025 Mercer CFA Institute Global Pension Index, one place lower than in 2024, according to the Finnish Centre for Pensions (Eläketurvakeskus). Finland's total score improved slightly, but almost all countries in the 52-country comparison also recorded higher scores, partly due to pension reforms elsewhere and adjustments to the indicators used. Liaison Manager Mika Vidlund described the drop as occurring despite Finland's strong performance.
Finland continues to receive the highest marks for integrity, the sub-index covering operational effectiveness, transparency, regulation and the reasonableness of administrative costs. Director Allan Paldanius said Finland excels and even serves as a model in this area. Mercer also rated Finland's administration the highest in the world, citing the ability to claim an old-age pension quickly through a single point of contact, whereas pensions in many other countries are fragmented across institutions.
Finland faces more challenges than other top-ten countries on financial sustainability and adequacy of pension provision, according to Paldanius, though he noted the differences between countries are not significant. Mercer identified Iceland, Denmark and the Netherlands as having the most financially sustainable systems, all of which use fully funded, defined contribution schemes covering most of the working-age population.
Sweden's rise is the notable Nordic development. Finland had consistently outscored Sweden in the comparison, but Sweden now ranks ahead. Vidlund attributed this to Sweden catching up on adequacy and sustainability and strengthening its administrative reliability, following reforms including updated governance and investment rules for the AP buffer funds, reinforced risk management in occupational pension companies, and clarified governance responsibilities.
The index, published since 2009, weights adequacy at 40%, sustainability at 35% and integrity at 25%. This year's edition covered 52 countries, including Kuwait, Namibia, Oman and Panama for the first time.
Finland continues to receive the highest marks for integrity, the sub-index covering operational effectiveness, transparency, regulation and the reasonableness of administrative costs. Director Allan Paldanius said Finland excels and even serves as a model in this area. Mercer also rated Finland's administration the highest in the world, citing the ability to claim an old-age pension quickly through a single point of contact, whereas pensions in many other countries are fragmented across institutions.
Finland faces more challenges than other top-ten countries on financial sustainability and adequacy of pension provision, according to Paldanius, though he noted the differences between countries are not significant. Mercer identified Iceland, Denmark and the Netherlands as having the most financially sustainable systems, all of which use fully funded, defined contribution schemes covering most of the working-age population.
Sweden's rise is the notable Nordic development. Finland had consistently outscored Sweden in the comparison, but Sweden now ranks ahead. Vidlund attributed this to Sweden catching up on adequacy and sustainability and strengthening its administrative reliability, following reforms including updated governance and investment rules for the AP buffer funds, reinforced risk management in occupational pension companies, and clarified governance responsibilities.
The index, published since 2009, weights adequacy at 40%, sustainability at 35% and integrity at 25%. This year's edition covered 52 countries, including Kuwait, Namibia, Oman and Panama for the first time.
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