Pension protection in Finland

The Finnish pension system is divided into two separate subsections – statutory earnings-related pension insurance and national pension insurance.

Earnings-related pensions are accumulated during working periods in saving for age, disability, or decease of parental unit. Its purpose is to guarantee a reasonable savings account based on earnings, when the time comes to terminate employment life.

Pension accrued from earnings, in the case of incomplete employment periods,  may then be complemented by pensions received from the Finnish social security system.

National pension is only paid if other aggregate earnings-related pensions are less than the stated revenue cap.

The Finnish pensions system is unique. No other voluntary insurance can replace it. Finland, unlike many other countries, does not have any predetermined pensions ceiling amount imposed – pensions are entirely determined by earnings based on your career.

There is furthermore no termination date for old-age pension. Finnish pension is also payable to any citizen living overseas.

In order to maintain purchasing power pensions are adjusted annually according to an index.