Kokonaiseläke

Kokonaiseläke, often translated as total pension, refers to the sum of all pension benefits an individual is entitled to receive. This includes pensions from various sources, such as statutory earnings-related pensions, occupational pensions, and potentially private pension savings or other forms of retirement income. The concept of kokonaiseläke is important in understanding an individual's overall financial security in retirement.

In many pension systems, like the Finnish one, a kokonaiseläke is calculated by combining different pension components. The statutory earnings-related pension, based on earnings during working life, typically forms the largest part. Occupational pensions, provided by employers, supplement this, reflecting employment in specific industries or companies. Private pension insurance or voluntary savings can further add to the kokonaiseläke, offering individuals more control over their retirement income.

The composition and amount of an individual's kokonaiseläke depend on several factors, including their work history, income levels, participation in occupational pension schemes, and personal savings decisions. Understanding the kokonaiseläke is crucial for retirement planning, allowing individuals to assess whether their expected pension income will be sufficient to maintain their desired standard of living. Policymakers also consider the average kokonaiseläke when evaluating the adequacy of the pension system.