Lisäeläkettä

Lisäeläkett, often translated as supplementary pension or additional pension, refers to a voluntary savings or insurance scheme designed to provide individuals with additional income during their retirement years, supplementing the statutory pension. These schemes are typically offered by private insurance companies, banks, or employers and are distinct from the mandatory state-provided pension system.

The purpose of a lisäeläkett is to help individuals maintain their standard of living after they stop working, as state pensions may not always be sufficient to cover all expenses. Contributions to these schemes can be made by individuals themselves or jointly with their employers. The accumulated funds are then paid out as a lump sum or regular income upon retirement, depending on the terms of the specific plan.

There are various types of lisäeläkett arrangements, including unit-linked insurance policies, mutual funds, and savings accounts with guaranteed interest rates. The investment strategies and associated risks vary widely among these options. Tax regulations surrounding these supplementary pensions differ by country, with some offering tax advantages on contributions or payouts to encourage participation. Understanding the specific terms, conditions, and tax implications of any lisäeläkett is crucial before making a commitment.