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Ideological Orientation of the Finnish Pension System and Pension Reform: Path Creation and Path Dependence

  • Journal of the Scandinavian Society of Korea
  • Abbr : JSSK
  • 2025, (36), 1
  • Publisher : The Scandinavian Society of Korea
  • Research Area : Social Science > Area Studies > North Europe(Scandinavian)
  • Received : November 18, 2025
  • Accepted : December 18, 2025
  • Published : December 31, 2025

Hea-Young Sung 1

1국민연금연구원

Accredited

ABSTRACT

The purpose of this study is to identify, within a historical context, the reasons why pension reforms in Finland aimed at securing the sustainability of pension finances have been implemented without triggering social conflict. The analysis reveals that the Finnish pension system evolved into its current earning-related structure through a competitive development process in which the earning-related pension prevailed over the universal basic pension. As ideological orientation and institutional design became firmly intertwined, the key players in the development of the earning-related pension system became labors and employers, while the roles of the government and parliament were diminished. The government’s role was minimized to providing guidelines such as maintaining overall expenditure limits and preserving the characteristics of the system. Measures to ensure sustainability were set primarily by stakeholders, thereby minimizing social conflict. Rather than undergoing large-scale reforms, Finland has maintained its framework through frequent parametric adjustments, creating a path-dependent trajectory that continues to shape its pension reforms today.

Citation status

* References for papers published after 2024 are currently being built.