The smaller funds, with total assets of DKr6.5bn, have declared their intentions to merge with the much larger fund and aim for the fusion to take place in the beginning of 2010. Reasons behind the move were cost-cutting and the search for more value for their members. AP Pension currently runs the administration of the two schemes.

41    The per cent proportion of pensioners to workers in Finland. The figure is the highest in western Europe, and has prompted calls by the Organisation for Economic Co-Operation and Development for Finland to adjust its taxation and pension policies,
particularly related to its low average retirement age and income tax, which remains one of the highest in Europe.

4   The per cent inflation expected by the Finnish ministry of finance for 2008. The figure was an increase from a previous forecast by the ministry of 3.3 per cent. Factors leading to the change were the rising cost of energy, food and real estate. At the same time, the country’s GDP is only expected to grow by 2.8 per cent in 2008 and 2 per cent in 2009.

75     The per cent drop in investment returns by Danish pension funds and insurers in 2007, according to the Danish Financial Supervisory Authority. The organisation said rising interest rates and equity price fluctuations were the main culprits. Returns fell from DKr55bn in 2006 to DKr14bn in 2007, one of the biggest drops in recent history.

2.1   The forecasted growth in the Swedish economy in 2008, according to the country’s ministry of finance. This is expected to fall to 1.8 per cent in 2009 and has prompted an effort by the government to cut taxes as a way to spur growth. Tax cuts could reportedly total as much as SKr5bn (€530m) to SKr15bn and would be aimed at
middle and lower-income individuals. These low economic growth rates have been pervasive throughout the Nordic region.

Printer friendly version

Email this article to a friend