Accumulatedeläkemärkintä

Accumulatedeläkemärkintä, often abbreviated as AEM, is a Finnish term that translates to "accumulated pension mark." It is a system used in Finland to calculate the pension benefits of individuals based on their entire working career, rather than just the most recent years. This system aims to ensure that workers receive a fair and adequate pension, regardless of changes in employment patterns or economic conditions during their working life.

The AEM system takes into account various factors, including the length of service, the average earnings during the working career, and any periods of unemployment or part-time work. The calculation is based on a formula that assigns a certain number of points to each year of work, with higher points awarded for higher earnings. These points are then converted into a pension amount.

One of the key advantages of the AEM system is its flexibility. It allows workers to change jobs or take time off from work without interrupting their pension accumulation. This is particularly beneficial for those who have taken care of their families or have had periods of unemployment due to personal reasons.

However, the AEM system also has its critics. Some argue that it can lead to a situation where workers with long careers but lower earnings receive a higher pension than those with shorter careers but higher earnings. This is because the system is based on the average earnings over the entire working career, rather than the highest earnings.

Despite these criticisms, the AEM system has been widely accepted in Finland as a fair and efficient way to calculate pension benefits. It has helped to ensure that Finnish workers receive a pension that reflects their entire working career, providing them with a stable income in their retirement years.