eläkkeissä

Eläkkeet (pensions) are regular payments to people who have left the workforce or can no longer work due to illness or disability. In Finland, the pension system rests on two main pillars: Kansaneläke (the national pension) and ansiosidonnainen eläke (earnings-related pension). Additional components include lesken- ja perhe-eläkkeet (survivor and family pensions) and various private arrangements.

Kansaneläke is a basic, means-tested pension intended to secure a minimum income for people with limited or no earnings history. It is administered by Kela (the Finnish Social Insurance Institution) and can supplement other pension income or cover living costs if other pensions are small or absent.

An earnings-related pension accrues from years of work and earnings. In Finland, employees build entitlement mainly through TyEL (the statutory earnings-related pension) and, for the self-employed, the YEL system. The resulting pension depends on the length of coverage, average earnings, and retirement age. Retiring early reduces monthly payments; delaying retirement increases them.

Disability pension is paid to people whose ability to work is permanently reduced by illness or injury. Survivor’s pension is paid to eligible spouses, registered partners, or children after a wage earner dies. These benefits are coordinated with other social security benefits to avoid overlap.

Administration and overview: Kansaneläke is managed by Kela; earnings-related pensions are administered by pension institutions and insurance companies, under supervision by public authorities. The Finnish system aims to provide adequate retirement income while encouraging longer working careers, with gradual changes to the statutory retirement age.