In this report, we compare the level of pension contributions in nine European countries in 2014. Our report depicts the cost burden of pension provision in the countries under comparison. It takes into account statutory pension contributions, as well as the contributions of occupational pensions, which are common in Europe, and the share of general tax revenues in pension financing.
The highest contribution level relative to GDP is in Denmark (16.2%) and the smallest in Sweden (12.8%). With a total contribution level of 13.4 per cent, Finland is on an average European level.
“Our comparison has taken into account the structural differences between the systems in the different countries. As a result, it offers a general view of pension expenditure. If we were to examine only the statutory pension contributions, the Finnish pension provision would appear to be much more expensive”, says Mika Vidlund, liaison manager at the Finnish Centre for Pensions.