Peruseläkevakuutus

Peruseläkevakuutus is a Finnish term referring to a basic pension insurance. This type of insurance is a fundamental part of the Finnish social security system, aiming to provide a basic income for individuals upon reaching retirement age. It is designed to cover essential living expenses and ensure a minimum standard of living for all citizens.

The Finnish pension system is largely earnings-related, meaning the amount of pension received is linked to an individual's previous income. However, peruseläkevakuutus acts as a foundational element, guaranteeing a certain level of pension regardless of past earnings, particularly for those who have had low income or periods of unemployment. This ensures a safety net for all.

The financing of the peruseläkevakuutus typically comes from a combination of contributions from employers and employees, as well as state funding. The specific contribution rates and pension amounts are subject to legislation and can be adjusted over time to reflect economic conditions and demographic changes.

The administration of the peruseläkevakuutus is handled by specific Finnish social insurance institutions. These institutions are responsible for collecting contributions, processing pension applications, and disbursing pension payments. The system is designed to be comprehensive, covering most residents of Finland. Its primary goal is to provide economic security in old age.