Earnings-related and national pensions ensure an income in old age and in case of disability and the death of a family breadwinner. The aim of the earnings-related pension is to secure that a reasonable consumption level continues in retirement. Earnings-related pension accrues from paid work and self-employment which are insured in the earnings-related pension system. The national and the guarantee pensions secure a minimum income. Living in Finland is a precondition for getting a national and a guarantee pension.

The earnings-related pension system forms a considerable part of pension provision. At year-end 2023, a total of 66 per cent of all pensioners residing in Finland received an earnings-related pension. Around 29 per cent received a pension both from the earnings-related and the national pension while 5 per cent received only a national pension. At year-end 2023, a total of 1,598,000 persons residing in Finland received a pension. Around 1,568,000 persons received a pension in one’s own right (excl. the survivors’ pension).

Understanding Finnish Pensions

The book describes the Finnish pension system and gives an overview of the security it provides. It depicts how pensions are financed and how pension provision compares internationally. It also sheds light on the decision making and reforming of pensions in Finland.

Understanding Finnish Pensions (Julkari)

Total pension in 2024

The taxation of earnings-related pensions, national benefits and pensions affect the net pension in hand. This review looks at how the components that affect the total pension have been determined in 2024.

Total pension 2024 (Julkari)

Your pension

– Estimate your own pension
– Check your earnings-related pension
– Find out your retirement age
– Claim a pension

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Average pension

The average monthly total pension for all pension recipients in 2023 was 1,869 euros. The figure includes also pensions paid abroad and survivors’ pensions.

Average Pensions

Earnings-related benefits

The aim of the earnings-related pension is to secure a reasonable consumption level. The earnings-related pension is determined based on a person’s annual earnings and an accrual rate. Earnings-related pension accrues at a rate of 1.5 per cent per year of all earnings from the age of 17 to the age when the insurance obligation ends.

Earnings-related Pension Benefits

Income level of pension recipients

Studies show that the income of retirees has improved over the last 20 years when measured with all key income indicators. The position of retirees in relation to wage earners has remained unchanged. Poverty is most common among those getting a disability pension, living in single households and older women.

Economic Welfare of Pensioners

Finnish Centre for Pensions – Central body of and expert on statutory earnings-related pensions