Lisäeläkett

Lisäeläke, often translated as supplementary pension or additional pension, refers to a type of retirement savings plan that complements the state-mandated pension system. In many countries, the basic state pension may not be sufficient to maintain a desired standard of living after retirement. Therefore, individuals and employers often opt for additional pension schemes to build a more substantial nest egg.

These supplementary pensions can take various forms. They might be occupational pensions, where an employer contributes to a pension fund on behalf of their employees, often as part of their benefits package. Alternatively, they can be personal pension plans, which individuals set up and contribute to themselves, sometimes with tax incentives. The accumulation of funds in a lisäeläke typically involves investments, with the potential for growth over time.

The purpose of a lisäeläke is to provide financial security during retirement, offering an additional stream of income alongside the public pension. The specific rules, contribution methods, and payout options vary significantly depending on the country and the type of supplementary pension scheme in place. It is a common feature in many developed economies as a way to address long-term retirement income needs.