Työeläke

Työeläke is a Finnish term referring to a pension earned through employment. It is a fundamental part of the Finnish social security system, ensuring that individuals who have worked and paid pension contributions have a source of income after their working life. The Finnish earnings-related pension system is mandatory for all employees and self-employed individuals.

The amount of työeläke is determined by an individual's earnings during their working life and the pension contribution rate. A portion of earnings is saved for the pension, and this accumulated amount, along with investment returns, forms the basis of the future pension. The pension accrues annually based on a percentage of the earned income.

There are different types of työeläke, including old-age pensions, disability pensions, and survivor's pensions. Old-age pensions are granted when an individual reaches the statutory retirement age, which is gradually increasing in Finland. Disability pensions are provided to individuals who are unable to work due to illness or injury. Survivor's pensions are paid to the surviving spouse and dependent children of a deceased person.

The administration of työeläke is handled by various pension providers, such as the Finnish Centre for Pensions (Eläketurvakeskus), which is the central authority, and specific pension insurance companies. These entities are responsible for collecting contributions, managing pension assets, and processing pension applications. The system is designed to be sustainable and adapt to demographic changes.