Vuosikertymät

Vuosikertymät is a Finnish term that translates to "annual accruals" or "accumulations" and primarily refers to the process of accumulating pension contributions over a working career. This concept is central to the Finnish earnings-related pension system.

The Finnish earnings-related pension is built up based on an individual's earnings throughout their working life. Each year, a certain percentage of an employee's and employer's wages is transferred to their pension account. This accumulation is known as vuosikertymät. The percentage varies depending on the age of the insured person. For younger workers, a smaller percentage accrues, while for older workers, the accrual rate increases.

These annual accruals are then revalued each year until retirement. This revaluation ensures that the accumulated pension capital maintains its real value against inflation. Upon retirement, the total accumulated pension capital, including the annual accruals and their revaluations, forms the basis for the pension entitlement. The system aims to provide a pension that is proportional to the individual's lifetime earnings.