Peruseläkejärjestelmän

Peruseläkejärjestelmä refers to the basic pension system in Finland. It is a statutory social security benefit that provides a minimum income for old-age pensioners, ensuring a basic level of financial security after retirement. This system is designed to cover essential living expenses and prevent poverty among the elderly.

The Finnish pension system is a combination of earnings-related pensions and a universal basic pension. The peruseläkejärjestelmä is the latter component, funded through taxation. It is administered by Kela, the Social Insurance Institution of Finland. Eligibility for the basic pension is generally based on Finnish citizenship or residency and is not directly tied to previous earnings.

The amount of the basic pension is determined by factors such as the pensioner's income from other sources, such as an earnings-related pension, and marital status. It is subject to an income test, meaning that the pension amount may be reduced if the pensioner has other income. The system aims to supplement other pension benefits to ensure that all pensioners receive a sufficient income. The level of the basic pension is adjusted annually to account for inflation. This ensures that its purchasing power is maintained over time.