Finnish Pension Security

The statutory pension security in Finland consists of defined benefit earnings-related pension that accrues from work, as well as residence-based national pension and guarantee pension that ensure minimum security. Statutory pensions provide security for old age, in the event of disability and the death of the breadwinner in the family. The significance of pension security supplementing the statutory system is minor.

Earnings-related pension security is financed mainly through employer and employee contributions. Earnings-related pension assets and return on investments are also important sources of financing. The State participates in the financing of pensions for the self-employed, farmers and seafarers. National pensions are financed with tax revenues.

The pension scheme is decentralised. Earnings-related pension providers manage pension insurance policies and pay out pensions. The Finnish Centre for Pensions serves as the joint statutory co-operation body of the earnings-related pension field. Legislation pertaining to the earnings-related pension scheme is developed jointly between the State, employers, employees and the self-employed. The national pension scheme is managed by the Social Insurance Institution of Finland under the supervision of Parliament.