Pension in Finland, as in any other country, is an instrument of social support for citizens. For those who were unable to earn a pension, other special payments are provided. The sources of financing for all these payments, as well as their size, differ depending on the form of pension. Today we will dwell in detail on each of the existing forms of pensions and the right of foreigners to receive them.
Types of pensions in the Finnish pension system
The pension system in Finland provides three main types of pension payments:
- labor, professional pension (Työeläkkeet);
- national, people's pension (Kansaneläkkeet);
- guaranteed pension (Takuueläke).
Payments received by a specific pensioner may consist of a labor pension or both labor and national pensions, depending on the size of the labor pension. A guaranteed pension can supplement these two benefits if necessary. Every pension in Finland in 2021 is paid by a specially designated organization.
Labor pension is payments that are formed through pension insurance. Insurance is the responsibility of all persons who work and receive a salary, regardless of hours of work and functions.
All employers are required to insure their employees if their age is 17-67 years and their monthly earnings exceed 58.27 euros. The amount of the insurance premium is tied to salary and is mutually financed by the employee and employer. Despite the fact that the retirement age in the country starts at 65 years old, Finnish employers do not have the right to send an employee to retire until the age of 68 if he has a desire to work.
The contribution amount in 2017-2018 was made according to the following table:
| Year | Basic insurance premium, % | Employer contribution, % | Amount of contribution of an employee under 53 years of age and over 62 years of age, % | Amount of contribution of an employee aged 53 to 62 years, % |
| 2018 | 24.4 | 16,75-18,05 | 6.35 | 7.65 |
| 2017 | 24.4 | 16,75-18,25 | 6.15 | 7.65 |
Entrepreneurs and farmers form their own retirement pension. Up to 53 and over 62 years of age, their insurance contributions are 24.1%, at the age of 53-62 years - 25.6% of labor income.
The professional pension system is private: all contributions are made to the accounts of non-state pension institutions and cash offices; here are some of the most popular non-state pension funds providing savings services:
- Eläke-Fennia;
- Eläke-Tapiola;
- Eter;
- Ilmarinen;
- Pensions-Alandia;
- Varma;
- Veritas Eläkevakuutus.
What kind of pension you will receive in Finland directly depends on the size of your salary and length of work experience. The amount of accumulated funds is determined as a share of earnings depending on age and from 2021 is calculated as follows:
- the basic savings rate for persons aged 17-53 years will be 1.5% of salary per month;
- for persons aged 53-62 years during the transition period (until January 1, 2021), the savings rate will be 1.7% of salary per month;
- for persons who continue to work after reaching retirement age, the savings rate will increase by 0.4 percentage points monthly. (previously a flat rate was set at 4.5%).
It is assumed that in order to receive a labor pension, a person leaves work and writes an application for the assignment of payments. He, however, can continue to work in a new workplace, and there he will receive new pension savings.
National and guaranteed pensions are paid by the State National and Social Security Service (KELA). The national and guaranteed old-age pension in Finland can be awarded to those who have not been able to earn an occupational pension or whose amount is too low.
The following conditions are important: registration with the Finnish social security system and residence on Finnish territory for at least three years (for EU citizens) or five years (for other categories) after reaching the age of 16 (before the assignment of any state pension).
The possibility of receiving a national pension, as well as its size, depend on the availability of other monthly pension income, as well as the marital status of the pensioner: if he is married or cohabiting, the amount of his national pension is reduced. The basic income to receive the maximum national pension must be 55.54 euros per month.
The guaranteed pension payment is the minimum pension. Anyone whose total pension income under Työeläkkeet and Kansaneläkkeet is below the basic amount of the guaranteed pension, which is as close as possible to the subsistence level, can apply for it. In this case, it compensates for the missing difference to the required minimum amount, regardless of the person’s age, citizenship and other characteristics.
Also, Takuueläke is paid in cases where, at the time of reaching retirement age, the subject was unable to earn a labor pension and does not receive a national pension.
In addition, there are such types of pensions as:
- Тyökyvyttömyyseläke – payments in case of loss of ability to work, if their cause was illness or work injury, and the duration of loss of ability to work is more than 1 year;
- Тapaturmaeläke – payments due to forced retirement due to an accident at work or due to an occupational disease;
- Рerhe-eläkettä – payments to children and widowers in the event of the loss of a breadwinner.
general characteristics
Many emigrants are interested in the question “Why does Finland have a high standard of living?” A small neighboring state with a population of 5.5 million, a harsh climate and high taxes regularly takes the first positions in various foreign publications in the ranking of “Best countries for...”. The level of health care, life, safety and even human happiness here is truly high. But there are, of course, negative aspects.
Pros and cons of Finland as a country to live in.
Pros.
- Good ecology. Finland is deservedly called the country of “a thousand lakes”, although in fact there are more than 187 thousand of them. Beautiful northern nature, untouched by man, majestic forests, clean water and air make Suomi (this is the self-name of Finland) one of the greenest corners of the planet, of which its inhabitants are very proud and diligently protect this honorable status.
- Purity. One of the national characteristics of the Finns is a pedantic love of order: you can see garbage on city streets only after mass holidays, and even in this case it is promptly removed by city services.
- Education. The Finnish school system is considered the best in the world, and higher education is free for everyone, including foreigners.
- Governmental support. The government has provided many types of social benefits for its citizens - from pensions to the well-known “basic income”. There are almost no homeless people here, and many immigrants live only on benefits.
About the types of Finnish pensions
In Finland in 2021, there are various pensions provided by the country's pension system. Social insurance for older citizens is carried out by the organization Kela, which, in addition to payments to pensioners living in the country, can also provide other benefits.
Finnish pension benefits
The most basic benefit program that the Finnish state provides to pensioners is payment for accommodation. But the amount is determined by the size of the pension and income; it is usually paid to elderly people with low pensions who are forced to rent housing.
For example, if a pensioner has neither a national nor a labor pension, but the guaranteed one is 747 euros minus 5 euros of taxes, he is entitled to a payment of 500 euros. If the labor amount is 1.5 thousand and with the deduction of 220 euros in taxes, 240 euros are added to him to pay for accommodation.
You can find out more about how to emigrate to Finland and obtain citizenship on our website.
It happens that living costs are more expensive than the pensioner’s allowance, but he must have at least 0.5 thousand euros left for himself. But this amount is inaccurate, since the cost of living in different parts of the country varies somewhat, and marital status also affects.
Food prices in Finland are slightly higher than the European average.
In general, the difference, as practice shows, is not significant due to the fact that these payments differ for each region of Finland and at the end of the day the pensioner should have a sufficient reserve of funds.
Opportunity to earn money abroad
The Finnish pension system provides for the possibility of receiving it for foreigners in any part of the world.
If a person came to Finland and worked, then after returning to his homeland, after a while he is entitled to old-age payments.
Moreover, permanent residence in another country is not a problem if the foreigner worked officially, since the employer made deductions; there is no need to collect a lot of documents to confirm work experience; in Finland, all this data is entered into a computer system, so there is no need to worry, everyone who earns money in Finland, both their own and others’, is entered into the system.
The ratio of direct and indirect taxes in different countries
National pension
Social insurance payments to people who for some reason do not have an accumulated part of their pension or have accumulated a very small amount are handled by the organization KELA.
Elderly people over 65 years of age are entitled to the means of subsistence.
The exception is for citizens who are unemployed due to disability; they can count on this type of compensation much earlier.
Such a payment, in fact, is auxiliary, and, unlike a funded payment, does not imply tax deductions. The fixed amount of the national pension if an elderly person is single is 628.75 euros, for married elderly people it is 100 euros less.
At the same time, the pension in Finland cannot be less than the minimum subsistence level (700 euros); the remaining amount is provided by state allowances.
People's benefits are assigned only to Finnish citizens and permanently residing (minimum 3-5 years) foreigners.
Retirement age
Over the past 15 years, life expectancy in the country has increased by 4.5 years, therefore, in order to ensure the proper level of payments to pensioners, it was decided to raise the age at which they retire in Finland. A gradual increase model is envisaged until 2021. In accordance with it, the minimum retirement age is affected by the year of birth of the pensioner, and the age limit itself increases by 3 months every year, starting in 2021.
At the same time, along with the minimum age, a maximum age is also established, above which the accumulation of pension rights within the framework of the pension insurance system does not occur, that is, it is flexible.
The basic age range for retirement pension is a minimum of 63 years and a maximum of 68 years for those born in 1954 and older. For the rest, a gradual increase is provided in accordance with this table.
| Year of birth | Lower limit of retirement age in years | Age limit for insurance in years |
| 1954 and earlier | 63 | 68 |
| 1955 | 63 years 3 months | 68 |
| 1956 | 63 years 6 months | 68 |
| 1957 | 63 years 9 months | 68 |
| 1958 | 64 | 69 |
| 1959 | 64 years 3 months | 69 |
| 1960 | 64 years 6 months | 69 |
| 1961 | 64 years 9 months | 69 |
| 1962-1964 | 65 | 70 |
| 1965- and younger | Depends on life expectancy. It is expected that the age limit will increase by 2 months per year from 2030. | 70 |
Thus, by 2021, a labor pension will be possible only after reaching 65 years of age. After reaching 68-70 years of age, pension accumulation under the insurance system is not carried out. From 2021, the minimum age will be linked to life expectancy, so for now it will remain at 65 years.
This reform does not apply to public sector employees: depending on the sector, their age is already 63-65 years. Over the next few years, the lower age limit will also reach 65 years.
A similar minimum of 65 years is established for receiving a national or guaranteed pension. It can be assigned ahead of schedule to persons who have reached the age of 63, but in this case its size is reduced by 0.4% for each month remaining until the age of 65. As the age for the labor pension increases, the age for the national pension also increases.
Obtaining a residence permit: stages, conditions, procedure
Migrants in Finland who have a residence permit have rights almost equal to ordinary citizens. The only restriction is that they cannot vote in elections. You can obtain a residence permit on the following grounds:
- family reunion;
- homecoming;
- employment under contract;
- obtaining refugee status;
- studying at a Finnish university.
There are no other reasons. To obtain a residence permit, you need to provide documents to the Migration Service at your place of residence:
- international passport;
- two photos with standard design;
- standard application form in Finnish;
- confirmation of the grounds for a long stay in the country - a letter from the university, a contract with the employer, a marriage certificate;
- documents confirming residence in the country: lease or purchase and sale agreement;
- confirmation of payment of the fee;
- income certificate confirming that the applicant pays taxes and regularly receives a salary.
After all documents have been submitted, all that remains is to wait for a response. If everything is fine, a residence permit will be issued.
Amounts of pension payments in Finland
The size of the pension in Finland primarily depends on the amount of labor income and length of work experience. It is believed that an employee must earn a full retirement pension over 38 years of work experience. During this time, his pension account should accumulate enough funds for a dignified old age.
The amount of pension savings is calculated using a simple formula:
Annual salary x 1.5% ÷ 12 = monthly savings.
Example: 40 thousand euros x 1.5% ÷ 12 = 50 euros/month
In this case, the accumulated funds are subject to indexation - special indices and coefficients are applied to them, which guarantee that the accumulated pension will retain its value at the time of the person’s retirement and provide purchasing power. Read more about pension indices.
In addition, pension institutions are the largest investors in the country, and the funds they earn increase pension savings. At the same time, as a citizen ages, increasing coefficients are applied to his pension, which adjust the amount of monthly payments.
The pension amount can be calculated using the online calculator on.
Taking into account all that has been said, the average pension in Finland is a very average concept and does not always reflect the real picture. According to 2021 data, it was 1,656 euros per month, while the average payment by age was 1,508 euros per month. Payments to men are on average 32% higher than to women - 1,871 euros versus 1,241 euros per month. In relation to the average earnings in the country, pension payments can provide about 50% of labor income.
The size of the national pension is much lower and, as we have already said, depends on the size of another pension and marital status.
| Family status | Full national pension amount | Maximum monthly income for national pension | Income for which the national pension is not paid |
| Lonely pensioner | 628.85 euros | 55.54 euros | 1,299.88 euros |
| In a relationship | 557.79 euros | 55.54 euros | 1,157.71 euros |
The higher the pensioner’s income in the range of 55-1299 euros, the lower the payments in the national system.
Guaranteed is the minimum pension in Finland. The amount is 775.27 euros per month if the maximum monthly income before taxes is 768.59 euros.
If a person does not receive any income at all, he will receive the full Takuueläke of 775 euros.
Labor, national, and survivor's benefits are taken into account and reduce the guaranteed pension. Some types of payments do not affect the amount of Takuueläke. Find out more about them at the Finnish Pension Service.
Pensions in Finland in rubles will surprise our compatriots from Russia, but you need to understand that expenses in Suomi (housing fees, medical care) are much higher:
- The statistical average payment within the labor pension is 125.7 thousand rubles.
- Payments within the national system are more modest - the full national pension is 47.7 thousand rubles.
- The amount of guaranteed pension benefits reaches 58.8 thousand rubles, below which a pension in Finland cannot even theoretically be lower.
What kind of work do you need to do to get a bigger pension?
Highly qualified specialists have high pension income: doctors, teachers, engineers, scientists. The size of their pensions is 2300-4500 euros. Read about the education system in Finland.
How much pensioners receive in Finland is determined by the size of the pension and the amount of income tax. Pension benefits are not tax exempt in this country. It is calculated on a progressive scale. The maximum tax rate is 22%.
According to the HelpAge International rating, which studies the level of well-being of pensioners around the world, Suomi is in 13th position. This is a very high figure.
The quality of life of older people can be judged by the average pension in Finland in 2021. Its amount after taxes is 1,716 euros (129 thousand rubles)
The procedure for applying for a pension in Finland
Retirement in Finland and the accrual of pension payments are not automatic. A person intending to retire must submit an application appropriate to his situation to the competent department. You can find and download the necessary forms, as well as familiarize yourself with the rules for filling them out or.
Applications for an occupational pension are usually submitted to the institution that has formed your savings for the last 2 years, although they can also be submitted to any other pension fund or to KELA. Applications for a national or guaranteed pension are submitted to KELA. You can also submit an application.
To submit an application online, you must identify your identity using online banking services. Along with the application, scanned copies of the required applications are also uploaded to the network. The filing procedure is simple if you follow the instructions provided in the system.
You can apply for retirement orally, including by calling 020 692 202 or at a customer service point. You can find the desired branch of the State Pension Service using
Before receiving a pension in Finland, you need to collect a package of documents. Typically this includes an ID card, a tax card (Verokortti) and a bank account statement. Please check the list of required documents with your consultant in advance, as it may differ depending on the type of pension.
The application must be submitted in advance, its consideration period is 6-8 weeks. Before the pension is calculated, the employment relationship with the employer must be terminated.
After reviewing the application, a pension card (Työeläkekortti) is sent to the applicant's home address. This is a kind of pension certificate confirming the achievement of retirement age and the assignment of insurance payments. It also confirms other benefits guaranteed by the pension status of the subject.
Once assigned, payments in the national system are made on the 7th of each month, payments in the guaranteed system are made on the 22nd of each month. The dates for payment of labor pensions are determined independently by each fund.
If the decision made does not suit the pensioner (for example, a pension is denied or its amount is lower than required), he has the right to appeal it within a month. Instructions in this regard are contained in the text of the decision.
Applying for a pension
To receive any type of pension you must submit an application. You can apply for labor or national pension on one form. You can complete the application online or send the application to any Kela branch, work pension institution branch or Pension Center. The application form is available on the websites or in the branches of these institutions.
You can apply for a guaranteed pension through the website or at a Kela branch. Kela's old-age pension and guaranteed pension can also be applied for by telephone. Kela's national telephone number is 020 692 202.
Pension from abroad
If you have lived or worked in other EU countries or countries with which Finland has a social security treaty besides Finland, you may also be entitled to a pension from these countries. You can apply for a pension from these countries at the same time as you apply for a national or occupational pension. Attach a separate form “Residing and working abroad” to your application. You can print the form from the Kela website or from the Pension Center website.
If you have worked in countries with which Finland does not have a social security agreement, you will need to find out for yourself whether you can receive a pension there. If receiving a pension is possible, you will need to apply for it yourself.
The Pensions Center can advise you if you are planning to receive your pension from abroad. Additional information is available on the Pensions Center website. You can also consult Kela.
Discounts, benefits and allowances for pensioners
Depending on the municipality, various discounts and benefits are available for pensioners. This may include benefits for:
- travel by train, intercity bus or air transport;
- travel on local public transport;
- Entrance fees to municipal sports centers, social and entertainment events.
In addition to such discounts, pensioners are entitled to a variety of allowances and benefits, including:
- allowance for a child under 16 years of age in the amount of 22 euros per month, including if he does not live with a pensioner, but he covers his expenses in a minimum amount of 156 euros per month;
- housing allowance, the amount depends on the amount of income and is a maximum of 507 euros per month;
- care allowance when the ability to independently care for oneself has significantly decreased - from 62 to 325 euros;
- front-line allowance for veterans in the amount of 50 euros, but can be increased to 240 euros;
- basic support benefit – assigned if daily basic expenses are higher than all income.
Registration of permanent residence and obtaining citizenship
Those who want to live in Finland not just permanently, but as a full citizen, must apply for permanent residence. The package of documents is the same, plus a motivation letter. Need to:
- pass an exam on knowledge of the Finnish language, as well as knowledge of the history of the country;
- continuously reside in the country for 4 years;
- have a job, the availability of which can be confirmed by documents;
- pay taxes correctly.
If Finland decides that it is interested in the person, he will be issued a permanent residence permit and citizenship.
Pension for foreigners
Considering the described reasons for payments and their sizes, all migrants are wondering how to earn a pension in Finland. There shouldn't be any problems with this.
Insurance is compulsory for everyone who earns a salary in Finland, either as an employee or as an entrepreneur. The citizenship of the worker or the country of his taxation does not matter.
Foreign employees are covered by the same statutory employment pension insurance as employees who are Finnish citizens. Moreover, the pension can be paid even for a relatively short period of work, including just a few months: the length of stay and work in Suomi for the purpose of Työeläkkeet is not of fundamental importance.
Another thing is pensions for foreigners in Finland under the national and guaranteed systems from KELA. To obtain them, we repeat, two main conditions must be met:
- Registration in the social insurance system.
- The minimum period of permanent residence is 5 years after reaching the age of 16 (for non-EU citizens, for citizens – 3 years).
Until this period is reached, foreigners do not have rights to pension provision from the state. If this period of residence was reached earlier, after the foreigner's 16th birthday, and after that he returned to Finland, for example, under a repatriation program, this period will be counted and the foreigner will be able to claim a state old-age pension.
Note that the pension in Finland for Russians does not differ in size from payments to native Finns. Their size is determined solely by salary or mandatory period of residence in Finland.
Widower's pension: purpose, size, cancellation
A Suomi citizen who has not reached his 65th birthday can apply for a widow's or widower's pension. This pension consists of an initial pension and a possible additional one.
To apply for such a pension you must:
- be legally married to the deceased spouse;
- have common children with your spouse.
If there were no common children:
- at the time of the death of the spouse, the widower must be 50 years old;
- the marriage must last at least 5 years.
The initial pension is about 327 euros (24.5 thousand rubles). The payment period is 6 months. If there are children under 18 years of age, the widower may receive an additional pension. It consists of a base size and an add-on. Basic size – 102 euros (8 thousand rubles).
Pension benefits in other European countries
Finland is a striking example of a successful organization of a pension system, where payments in favor of pensioners not only have a high replacement rate for lost earnings, but also provide their recipients with an adequate standard of living. Not all pensions in European countries can boast of this result. Here are some striking examples.
| A country | Retirement age, years | Average pension |
| Germany | 65.3 | 1200 euros |
| France | 62 (goes up to 67) | 1200 euros |
| Spain | 65 (goes up to 67) | 800 euros |
| Poland | 60-65 | 2100 zlotys or 502 euros |
| Denmark | 67 | 1600 euros |
| Norway | 67 | 1800 euros |
| Sweden | 65 | 1870 euros |
Many or few
Photo: stada.fi
It is difficult to judge whether Finnish pensioners receive a lot or a little. Everyone understands that high pensions in the capital region are partly eaten up by higher prices. On the other hand, in the Finnish outback, the distances between socially important objects can be quite large, which means additional transport costs.
In rural areas, former farmers with small pensions often lead such a lifestyle that they do not seem to need large expenses, but this does not mean that their standard of living can be called high. As for the main benefits, they are distributed quite evenly among pensioners.
The conclusions are simple: high pensions around Helsinki and Turku mean a higher standard of living.
Igor Koskinen
