eläkekertymät

Eläkekertymät refer to mandatory pension savings programs in Finland, intended to provide financial security for individuals during retirement. The pension system is based on the concept of earnings-related pensions, which account for a substantial portion of citizens' retirement income.

Eläkekertymät are a cornerstone of Finland's social security system, and participation is compulsory for employed individuals. The pension contributions are made by both the employer and the employee, with the employer contributing 62% of the employee's gross income and the employee contributing 6.5%. The contributions, however, are typically deducted directly from the employee's paycheck.

Funds contributed to eläkekertymät are invested on the individual's behalf in a pension insurance company or a mutual fund, depending on the chosen pension plan. The pension payout is calculated based on an individual's earnings history and the pension contributions made during their working life.

Eläkekertymät typically become effective once an individual reaches the age of 63. Individuals can choose from various pension plans when they begin working, including a general plan or a private pension plan. Finland's pension system is designed to provide a predictable and reliable income source for citizens in their retirement years, allowing them to maintain a certain standard of living. The system also provides flexibility for individuals to make informed decisions about their retirement savings.

The Finnish pension system is often cited as a model of a well-designed and effective social security system, providing financial security to a significant portion of its population.