Varma - Annual Report 2012

Other risks

The economic development of the coming years will be characterised by the current euro crisis, increasing government budget deficits and a slowdown in overall global economic demand. The structural challenges for the Finnish economy are the sharp growth in public spending caused by the ageing of the population, the dwindling workforce, and especially the declining industrial activity in our country.

The escalation of the Finnish structural challenges in the current economic situation increase the risk that the financing balance of the earnings-related pension system will weaken in the long term and medium term, especially if the pension reform of 2017 does not achieve the goals set for an economically and socially sustainable pension system. The current economic crisis also adds to the risk of cost-increasing regulation in the earnings-related pension sector.

In order to control the risks, Varma is co-operating closely with its stakeholders and other players in the field and is developing its processes so that it can react to any changes in the earnings-related pension system on time.