Finnish earnings-related pension assets increased by €14bn in 2025 to reach €285bn at the end of the year, according to analysis by the Finnish Pensions Alliance (Tela).

The nominal return on employment pension assets for 2025 was 7.4 per cent, while the real return, which takes into account inflation as a factor, was 7.2 per cent.

Tela described 2025 as “successful” for employment pension insurers, with the last quarter of the year bringing a €6bn increase in assets.

Commenting, Tela chief economist, Mikko Mäkinen, said: “In the first half of last year, stock market performance was overshadowed by escalating geopolitical and trade tensions, particularly the US administration's trade policy stance.

“At that time, the stock market saw significant daily fluctuations. However, market sentiment improved in the spring, and towards the end of the year, the stock market developed in an upward trend.”

In addition, he commented on the weakening of the US dollar last year, which reduced the reported returns on US investments in euros.

“The weakening was due to factors such as the unpredictable trade policy of the US administration, concerns about the federal budget deficit, and uncertainty about the independence of the Federal Reserve. Investors' confidence in the US dollar's traditional safe-haven status clearly wavered,” he said.

On a more positive note, however, Mäkinen said the decline in Finnish listed shares ended last year.

“The Helsinki Stock Exchange's general index achieved an annual return of over 30 per cent, which was one of the best. European shares also performed well,” he noted.

In terms of the outlook for 2026, he was “cautiously optimistic”. He highlighted the global economy, which is forecast to grow at a rate of just over 3 per cent this year.

“Artificial investments (AI) investments… are expected to remain strong, and inflation is expected to remain moderate. However, geopolitical and trade tensions may bring surprises. Similarly, the indebtedness of developed countries is at a high level,” he explained.

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