Työuran alkutaipaleella

What you should know about pensions when you’re about to enter your working life

Although you’re far away from retirement, it’s good to know about pensions already when you’re at the beginning of your working life. The choices you make along the way may also affect how much pension you’ll get when you do retire.

The earnings-related pensions have been set up in law. They make sure you have an income when:

  • you are old,
  • you develop a disability, or
  • the wage earner in your family dies.

If your earnings-related pension is small, you may get a national pension and a guarantee pension paid by the Insurance Institution of Finland (Kela).

The basic principle is that you earn an earnings-related pension when you work as an employee or a self-employed person. How much pension you’ll get depends on for how long you work, how much you earn and how much your pension accrual rate is. The more you earn and the longer you work, the higher your pension will be.

 

17 years
If you’re employed, your employer will take out pension insurance for you when you have turned 17. Your employer will deduct your share of the contribution from your wages. Check your payslip to make sure your employer has met its obligation to insure you.
If you’re self-employed, you have to take out pension for yourself when you have turned 18.
1,5 per cent
Each year, your pension will grow at a rate of 1.5% of your annual gross wages. It doesn’t matter for how long you work. Your pension will grow also when you have a summer job or a seasonal job, as long as you earn about 59 euros per month. If you work off the books, you don’t earn a pension at all.
Retirement age depends on year of birth
The number of retired people is growing and people live longer. That is why each birth year has its own retirement age. If you were born in 1965 or later, your retirement age is still only an estimate. It’ll be con-firmed later and based on life expectancy projections.
Check your retirement age

Select your year of birth. The calculator will tell you your retirement age.

Retirement age ?

Your retirement age is the first possible age at which you can retire on an old-age pension.

- Your estimated time in retirement based on life expectancy. ?

Life expectancy is the average number of years that a person of a certain age is expected to live if mortality remains unchanged. In Finland, life expectancy is calculated by Statistics Finland.

-
Your target retirement age ?

Because people are living longer, the life expectancy coefficient has been introduced. It reduces the pension you receive. To offset the effect of the life expectancy coefficient, you need to work an additional length of time. This later retirement age is called your target retirement age.

- Your estimated time in retirement based on life expectancy. ?

Life expectancy is the average number of years that a person of a certain age is expected to live if mortality remains unchanged. In Finland, life expectancy is calculated by Statistics Finland.

-
Calculate your pension

Use the pension calculator to estimate how much pension you will receive.

More themes