Pensions

A pension guarantees an income after working life. Pensions consist primarily of an earnings-related pension based on past employment and a national pension based on residence in Finland. The employment and national pensions are statutory.

The pension system guarantees an income in old age, upon the death of the family’s breadwinner or in the event of an elderly person’s unemployment. Employment pension laws allow part-time employment and the associated part-time pension.

Employment pension provides a reasonable income. The national pension guarantees minimum security if the individual has no employment pension, or if it is small. The national pension is dependent on the amount of employment pension received.

The highest pension is accrued by those over the age of 60 and still working. The amount of pension and its accrual can be estimated with tables and calculators available on the Internet. Pension companies can help with the evaluation.

Employment insurance security is funded by the employer and employee together. The employer collects, in connection with salary payment, the employee's share of the insurance payment and pays that and the employer's own share to the insurance institution. One way of looking at it is that pension is a proportion of salary paid during retirement. National pensions are funded with taxes. Statutory pension provision may be supplemented by voluntary pension insurance.

Employment and national pension are applied for with one application form. Different types of pension have their own application forms. Employment pension is granted and paid by the pension institution where the last employment relationship or entrepreneurial business was insured. Local government pensions are managed by Keva as well as central government pensions.