Eläkevakuutus

Eläkevakuutus, translated as pension insurance, is a vital component of the Finnish social security system. It ensures that individuals have a financial safety net during their retirement years. The system is primarily funded through contributions made by both employees and employers, as well as through government allocations. These contributions are collected and managed by various pension providers, with the largest being Ilmarinen, Varma, and Elo.

There are several types of pension insurance in Finland. The most common is the earnings-related pension, which is accumulated based on an individual's earnings during their working life. The pension amount is calculated using a coefficient applied to the earnings. Another important type is the statutory pension, which covers all individuals working in Finland, regardless of their employment status. In addition to these, there are also voluntary pension insurance schemes that individuals can opt for to supplement their statutory pensions.

The Finnish pension system is designed to be comprehensive and provide a reasonable standard of living for retirees. Pension reforms have been implemented over the years to ensure the system's sustainability and adjust it to demographic changes, such as increasing life expectancy and declining birth rates. These reforms often involve adjustments to contribution rates, retirement ages, and pension accrual. The administration of eläkevakuutus is overseen by the Finnish Centre for Pensions (Eläketurvakeskus), which provides guidance and information on pension matters.