Takuueläke

Takuueläke, or guaranteed pension, is a component of Finland’s pension system designed to secure a minimum level of retirement income for residents with low earnings-based pensions. It is paid by Kela, the Social Insurance Institution of Finland, as a supplement to other pension benefits, such as the national pension (kansaneläke) and any earnings-related pension the person may have.

Eligibility for takuueläke requires residence in Finland and a sufficient length of residence for pension eligibility, as well as total pension income below a specified threshold. The amount of takuueläke is determined by factors such as age and the level of other pension income; it is reduced or not paid if the person already receives higher pension income. Applications are submitted to Kela, which reviews eligibility and calculates the payable amount.

The payment is a monthly top-up intended to ensure that the overall pension income does not fall below a guaranteed level. The exact amount and its interaction with other pension income can change over time, as policies and inflation adjustments occur. Members may see changes in eligibility or payment if their residence status, age, or other income changes.

Administration and policy context: Takuueläke sits alongside Finland’s mix of universal and earnings-related pensions. It targets low-income pensioners and interacts with the Kansaneläke and the earnings-related system to raise minimum retirement income. The measure has been part of ongoing discussions about adequacy, sustainability, and eligibility rules within the Finnish pension framework.