The Finnish pension system is one of the strongest in the world. Here is how it works, even if you only work in Finland for a few years.
Finland has a mandatory earnings-related pension system. Both your employer and you contribute: employers pay about 17 percent and employees pay about 7 to 8 percent of gross salary. You earn pension from all employment in Finland, even part-time or temporary work. Pension accrues from age 17.
The retirement age in Finland is gradually rising. It is currently between 63 and 65 depending on your birth year, and will increase further for younger generations. You can take early retirement with reduced benefits or work longer for higher benefits. Working past the minimum retirement age increases your pension significantly.
Your earned pension rights remain in Finland even if you leave the country. When you reach retirement age, you can claim your Finnish pension from abroad. It is paid to your bank account wherever you live. EU regulations ensure that pension periods in different EU countries are combined.
If your earnings-related pension is very small or you have none, Kela provides a national pension (kansaneläke) to guarantee a minimum income in retirement. This requires living in Finland for at least 3 years after age 16. The guarantee pension (takuueläke) ensures a minimum monthly income of about 920 euros for pensioners.
Common mistake
Thinking short-term work does not earn any pension. Every month you work in Finland accrues pension, even if it is a small amount.
Good to know
You can check your accrued pension at any time through the Työeläke.fi service. Finland has social security agreements with many countries that allow combining pension periods across borders.