Varhaiseläke

Varhaiseläke, or early retirement pension, is a Finnish term referring to the option for individuals to retire before the standard retirement age and receive a pension. In Finland, the standard retirement age is gradually increasing and will reach 65 years by 2030. However, individuals may be eligible for varhaiseläke before this age under certain conditions.

The eligibility for varhaiseläke depends on several factors, including the individual's age, the number of years they have worked and paid social security contributions, and their health or employment status. Generally, individuals must have paid social security contributions for at least 38 years to be eligible for a full early retirement pension. Those with fewer years of contributions may receive a reduced pension.

There are two main types of varhaiseläke: the employment-based early retirement pension (työeläke varhaiseläke) and the national pension early retirement pension (yksilöllinen eläkeikä). The employment-based early retirement pension is available to individuals who have worked and paid contributions to the earnings-related pension scheme. The national pension early retirement pension is available to individuals who have paid contributions to the national pension scheme but do not qualify for the employment-based pension.

The amount of varhaiseläke an individual receives depends on their earnings history, the number of years they have paid contributions, and the type of early retirement pension they qualify for. Generally, the pension amount is calculated as a percentage of the individual's average earnings over their working life.

Varhaiseläke is subject to taxation, and individuals receiving early retirement pension may also be eligible for other benefits, such as housing benefits or health care subsidies. It is essential to consult with a pension expert or the Finnish Centre for Pensions to determine eligibility and calculate the appropriate pension amount.