Finland’s mandatory pension contributions

A couple of weeks ago, I made an animated visualization of the population structure of Finland. Here’s another plot exploring demographic changes, this time coupled with the economy.

Finland has a defined-benefit and earnings-related statutory pension system. Employers are required by law to pay pension contributions of 24.0 % on top of an employee’s gross salary. In addition, the employee is required to pay a contribution of 5.7 %, or if they are 53 years or older, 7.2 %. These contributions are used to pay out the current pension liabilities. (The system is partly funded, but currently more is paid out than collected.)

Here’s a plot of the total contributions as a percentage of the gross domestic product (GDP).


The R code to produce the plot is in this gist.

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