työeläkevakuutuksena

Työeläkevakuutus, often translated as occupational pension insurance, is a mandatory system in Finland designed to secure an individual's income after retirement. It is funded by contributions from both employees and employers, as well as by the self-employed themselves. The contributions are invested, and the accumulated funds form the basis for the pension paid out later.

The Finnish occupational pension system is earnings-related, meaning that the amount of pension received is directly linked to the individual's earnings during their working life. Higher earnings generally lead to a higher pension. Pensions are also affected by the age at which an individual chooses to retire. Early retirement typically results in a lower pension amount, while delaying retirement can lead to a higher pension.

There are different types of occupational pension providers in Finland, including private insurance companies, pension foundations, and industry-specific pension institutions. These institutions manage the contributions, invest the funds, and are responsible for paying out pensions. The system aims to provide a sustainable and adequate level of income security for the elderly, supplementing the basic pension provided by Kela (the Social Insurance Institution of Finland). The regulations governing työeläkevakuutus are established by Finnish law, ensuring a standardized and reliable system for all participants.