Eläketurvaa

Eläketurva, or pension security, refers to the Finnish system that guarantees income during retirement and provides protection in cases of disability or the death of a family member. It aims to prevent poverty in old age and to secure a stable standard of living for residents who have earned pension rights.

The Finnish pension system is built on two main pillars. The national pension (Kansaneläke) is a basic pension paid by the Social Insurance Institution (Kela) to residents who meet residence requirements and have limited or no earnings history. The earnings-related pension (työeläkkeet) is based on work history and earned earnings, and is primarily financed by payroll contributions. Earnings-related pensions are managed by pension providers within the system and coordinated to provide supplementary income in retirement.

Rights to Eläketurva are accrued during working life and depend on factors such as years of work and the level of earnings. The retirement age is designed to be gradual and flexible, with pathways to retire at different ages under the rules governing the earnings-related and national schemes. Changes to the law reflect demographic development and financial sustainability concerns.

Administration and oversight involve several key institutions. Kela administers the national pension, while the earnings-related part is organized by pension institutions under public supervision. The Finnish Centre for Pensions (Eläketurvakeskus) monitors the system, provides actuarial analysis, and issues guidance and statistics to support policy and public understanding. Together, these components form the core of Eläketurva, aiming to secure adequate income for retirees, people with disabilities, and surviving relatives.