Varhaiseläkkeeseen

Varhaiseläkkeeseen, often abbreviated as VE, is a Finnish government program aimed at encouraging early retirement. The program was introduced in 2012 as part of the government's efforts to combat an aging population and reduce the financial burden on the state pension system. The primary goal of Varhaiseläkkeeseen is to provide financial incentives for individuals to retire before the traditional retirement age of 63, with the incentive increasing the later the individual retires.

To be eligible for Varhaiseläkkeeseen, individuals must have reached the age of 58 and have at least 360 pension points, which is equivalent to about 15 years of contributions. The pension points are calculated based on the individual's earnings and the length of time they have contributed to the pension system. The program offers a lump-sum payment, which increases with each year of early retirement, up to a maximum of 12 years. The payment is calculated as a percentage of the individual's average earnings over the last five years, with the percentage increasing from 40% for a 1-year early retirement to 80% for a 12-year early retirement.

The Varhaiseläkkeeseen program has been controversial, with critics arguing that it encourages early retirement and may lead to a decrease in the workforce, while supporters argue that it provides financial security for individuals and reduces the financial burden on the state pension system. As of 2023, the program has been extended and modified several times to address these concerns and ensure its sustainability. The Finnish government continues to monitor the program's impact and make adjustments as needed.