Työeläkettä

Työeläkettä, commonly translated as earnings-related pension or occupational pension, is a fundamental component of the Finnish social security system. It is designed to provide income security for individuals in old age, based on their earnings during their working life. The system is funded through contributions made by both employers and employees. These contributions are invested, and the accumulated funds are used to pay out pensions.

There are several types of earnings-related pensions in Finland, including old-age pensions, disability pensions, and survivors' pensions. The amount of an old-age pension is calculated based on the pension accrual achieved during one's career. Pension accrual is a percentage of one's annual earnings, which varies slightly depending on age and the specific pension act.

The administration of the earnings-related pension system is handled by several pension providers, most notably Ilmarinen, Elo, Varma, and Veritas. These providers are responsible for collecting contributions, managing investments, and paying out pensions. The Finnish Centre for Pensions (Eläketurvakeskus) plays a central role in coordinating the system, developing legislation, and providing information.

Changes to the pension system are periodically made to ensure its long-term sustainability and adequacy. These reforms often aim to balance the needs of current pensioners with the financial obligations towards future generations. The earnings-related pension system is a crucial element in ensuring a reasonable standard of living for Finns after they retire from work.