eläki

Eläke is a form of retirement income provided by governments or employers to individuals who have reached a certain age or have worked for a specified period. The term "eläke" is Finnish, and it is commonly used in countries with similar social welfare systems, such as Sweden, Norway, and Denmark. The primary goal of the eläke system is to provide financial security to retirees and reduce the burden on the state's pension system.

Eläke can be categorized into two main types: mandatory and voluntary. Mandatory eläke is funded through payroll taxes and is available to all eligible individuals. Voluntary eläke, on the other hand, is an additional savings plan where individuals contribute a portion of their income to a personal account, which grows over time and can be withdrawn upon retirement.

The amount of eläke received varies depending on factors such as the individual's age, years of work, and the country's specific pension system. In some countries, eläke is indexed to inflation to maintain its purchasing power. Additionally, some pension systems offer supplementary benefits, such as disability pensions or survivor benefits, to provide additional financial support to retirees and their families.

Eläke plays a crucial role in the social and economic fabric of countries with well-established pension systems. It helps ensure that retirees have a stable income during their later years, reducing the risk of poverty and promoting overall well-being. Moreover, eläke contributes to the long-term sustainability of the pension system by encouraging individuals to save and invest for their retirement.