Varma - Annual Report 2012

Varma provides pension insurance for work carried out in Finland

Our operations are based on work carried out in Finland and on ensuring the sustainability of the earnings-related pension system. Our core function is to secure pensions.

Earnings-related pension is accrued through all work and self-employment. Pension is based on earned income as an employee or self-employed person and its purpose is to secure a reasonable standard of living after retirement. Earnings-related pension in the private sector is an essential part of the Finnish statutory social security system.

Earnings-related pensions are financed through pension contributions paid by employers and employees and through returns on investment activities. Successful investment activities can help reduce the pressure to increase pension contributions due to, for instance, the aging of the population.

We provide our customers with insurance and pension services relating to statutory pension provision and accumulate pension assets to cover current and future pensions. Approximately 70,000 companies and entrepreneurs have entrusted Varma with handling their pension coverage. We consider this an acknowledgement of our strong competence in insurance matters.

Joint efforts for extending careers

Finland needs domestic work, successful and competitive companies and longer careers – they help to secure the funding of future earnings-related pensions.

Every year, Varma works with hundreds of client companies to prolong people's careers. Our services in workability management and rehabilitation promote working capacity and help those insured by Varma to cope longer in working life.

A strong pension system offers security

The earnings-related pension system is based on a defined benefit scheme and creates security and stability in uncertain economic situations. Earnings-related pensions and the assets that are funded for them are well secured in the Finnish pension scheme even during economic turmoil.

The aging of the population and extending careers are challenges that concern businesses as well as individuals. Key issues in prolonging careers relate not only to the age of retirement but also to the employment rate, increasing productivity and preventing disability.