Dynamic Finnish Pension Scheme
Constantly renewing the pension scheme
Statutory pensions in Finland date back to the 1930s, when the national pension scheme was created. It was supplemented by earnings-related pensions for sailors in the 1950s. The principles of pensions and their coverage are constantly developing in a changing society.
Since the principal reform in 1956, national pensions have undergone structural reforms in the early 1980s and in 1996. The most recent structural reform was the introduction of the guarantee pension as of 2011.
The major turning points in the trajectory of earnings-related pensions are
- the creation of the earnings-related pension scheme under the Employees’ Pensions Act in 1962, and
- the extensive pension reforms in 2005, 2007 and 2017.
The reforms have unified the benefits of the entire earnings-related pension scheme. This is an ongoing process: the scope and content of the scheme have been developed each year between these mile stones.
The Finnish earnings-related pension scheme has been developed in cooperation by representatives from
- the State,
- employee organisations such as trade unions, and
- employer organisations.
The earnings-related pension reforms of 2005 and 2017 are described in more detail in this section. Some amendments made in 2007 and 2010 are also described.