vanhuuseläkejärjestelmää

The Finnish earnings-related pension system, known as vanhuuseläkejärjestelmä, is a mandatory social insurance scheme designed to provide income security for individuals in their old age. It is funded through contributions made by employees, employers, and the self-employed, as well as through investment returns from pension funds. The system is based on the principle of earnings-related benefits, meaning that the amount of pension received is linked to an individual's lifetime earnings.

Contributions are collected by pension providers, such as Ilmarinen, Elo, Varma, and Veritas. These contributions are then invested to ensure the long-term sustainability of the system. The retirement age in Finland is gradually being raised, and there are provisions for early retirement and deferred retirement, which can affect the pension amount.

When an individual retires, they receive their pension payments, which are adjusted annually for inflation. The system aims to ensure that individuals can maintain a reasonable standard of living after they stop working. The Finnish social security system also includes other benefits, such as unemployment benefits and disability pensions, which are administered separately but are part of the overall social safety net. The vanhuuseläkejärjestelmä is a cornerstone of Finland's welfare state, providing a crucial safety net for its citizens.