työeläkejärjestelmässä

The Finnish statutory pension system, known as the työeläkejärjestelmä, is a cornerstone of social security, providing income security for individuals in old age and in case of disability or the death of a breadwinner. This earnings-related pension system is mandatory for all employees and self-employed individuals working in Finland. Contributions are typically shared between the employer and the employee, with the self-employed making both contributions.

The pension is earned based on the income received during one's working life. A portion of earnings is accumulated into a pension capital, which then forms the basis for the pension entitlement. The pension accrues annually, and there are upper limits to the amount of earnings that can be counted towards pension accumulation. The system is designed to be flexible, allowing for retirement at different ages within a defined range, with early retirement typically resulting in a permanently reduced pension.

Several key players manage the Finnish statutory pension system. Pension providers, which are typically private insurance companies or foundations, are responsible for collecting contributions, managing pension capital, and paying out pensions. The Finnish Centre for Pensions (Eläketurvakeskus) plays a central role in developing the system, providing guidance, and overseeing its implementation. The system is continuously reviewed and adjusted to ensure its long-term sustainability and adequacy in meeting the changing needs of the population.