National pension and guarantee pension

The national pension is a form of statutory basic security for older people and those unable to work who are covered under Finland’s system of social security. The national pension accrues for the period spent residing in Finland. It guarantees a minimum income if the applicant does not receive an earnings-related pension or is on a small pension. The national pension decreases as the earnings-related pension increases. An applicant with a very small pension may obtain a guarantee pension in addition to the national pension.

An old age pension may be taken at 63 at the earliest and at 68 at the latest. Under the National Pensions Act, an old age pension is available from the age of 65. The pension can be taken early, in which case it is reduced proportionately.

The Act on Guarantee Pensions (Laki takuueläkkeestä 2010/703) entered into force on 1 March 2011. According to the Act, those with a very small pension may apply for a guarantee pension from State funds to ensure a reasonable level of income.

The amount of guarantee pension will depend on what other pensions the applicant is receiving. However, the guarantee pension will not be reduced by earned income, capital income, assets or informal care allowance.