Moving to Finland, especially for residents of northwestern Russia, is not an extraordinary event. Today, 30 thousand citizens of the Russian Federation live in Suomi, and for another 70 thousand citizens Russian is their native language. People come to Finland for a measured, prosperous life among natural beauty. In this vein, it doesn’t hurt to know everything about pensions in Finland.
Pensions in Finland
Pensions in Finland are considered high even by EU standards. The average pension in Suomi is 1656 euros/month. Interestingly, the pension for men in Finland is 32% higher than for women. The average pension for the male population of the country is 1,871 euros, and the average pension for the female half of the state is 1,241 euros. Pension benefits are approximately equal to fifty percent of labor income.
The amount of the Finnish pension directly depends on the amount of labor income and length of service. 38 years of work experience is the period that will allow you to receive a full pension. Many people begin to earn work experience for a pension in Finland at the age of seventeen; at the same age, pension funds in the Pension Fund begin to accumulate.
In Finland people retire at age 65, this applies to both sexes.
Many people are interested in the question: are work and pension compatible in Finland? You cannot receive salary and pension accruals at the same time. However, upon reaching the age of 65, a person can remain in work, thereby increasing his pension savings by 0.6% monthly. According to the law, an employer cannot prevent a pensioner from working until the latter reaches 68 years of age. A pensioner who worked for a period of time from 65 to 68 years increases the size of his pension by 14.4%.
You can see firsthand how Finnish pensioners live when visiting Suomi. Highly qualified specialists who have retired can afford to travel, buy a house by the sea, and lead a comfortable existence. However, it is known that about 6% of Finnish pensioners live below the poverty line. The poor here are people who, after paying taxes, have a net income of less than 1,200 euros.
Examples of Finnish pensions:
- doctor in Finland – 4500 euros;
- nurses – 1800 euros;
- secretary – 1600 euros;
- teachers – 2160 euros;
- professor – 4300 euros.
Entrepreneurs and farmers accumulate their retirement pension through fixed contributions. Up to 53 and over 62 years old, the amount of their insurance premiums is 24.1% (of labor income), in the age range 53 – 62 years – 25.6%.
Features of the Finnish pension system
There are three types of pensions in the country – labor, national and guaranteed.
62% of the population receives an employment pension in Finland. These are citizens of the country, as well as foreigners who have worked in Suomi for a certain period of time.
The national pension or old-age pension is assigned to those who do not have a job or its amount does not reach the subsistence level. A national pension in Finland for Russians is also possible if a person from Russia has lived on Finnish soil for more than five years and is over 16 years old. A pension in Finland for foreigners is accepted for consideration only after registration in the national social security system. The national pension in Finland for single pensioners is 628.75 euros, and for family pensioners – 557.79 euros. If a person receives a labor pension, the national pension is calculated individually, based on the pensioner’s income.
If a pensioner, receiving labor and national pensions, does not reach the subsistence level, then he is assigned a guarantee payment .
In Finland there is such a thing as a widow’s or widower’s pension. This pension is assigned to people under 65 years of age. The widow/widower pension consists of an initial pension of 327 euros, which is paid six months, and an additional pension of 102 euros. Only a widowed citizen raising children under 18 years of age has the right to an additional pension. If the child receives education, the family pension in Finland is extended until the age of 21. If you have a low income, you may be able to get help paying for your accommodation.
The size of a disabled person’s pension in Finland corresponds to the size of the national pension. The disability pension in Finland is paid until a person reaches 65 years of age, after which the old-age pension comes into force.
A disability pension in Finland can also be awarded to young people if they have been injured and a partial/total loss of ability to work has been established.
Many people are interested in what pensions pensioners have in Finland by region. Residents of the following regions have the highest pensions: Porvoo – 1803 euros, Vantaa – 1895 euros, Lemland (Aland Islands) – 1913 euros, Helsinki – 2090 euros, Espoo – 2247 euros. The western regions of Finland have the lowest pensions. For example, in the municipality of Isojoki – 1215 euros, in Soini – 1229 euros, in Karsamäki – 1241 euros, in Kyvijärvi – 1242 euros.
Pension in Finland for Russians
If a citizen of the Russian Federation worked in Finland for a certain time, then he has the right to receive a Finnish pension after reaching retirement age in his home country. The size of the pension will be based on the amount of accumulated funds. The Russian pension in Finland is taken into account in such a way that the Finnish pension is paid minus the Russian share.
A pension in Finland for pensioners from the CIS is possible if the person has lived in Finnish territory for more than five years and is enrolled in the national insurance system. A pension in Finland for Russians without work experience is also paid, but, of course, the amount is small.
If a Finnish citizen moves to another country, he does not lose his Finnish pension. But its value will depend on the tax system of the chosen country of residence. There is an agreement between Finland and a number of European countries on a three-year tax withholding in favor of the Finnish tax system. After three years, the pensioner’s income begins to be taxed according to the tax rules of the new homeland.
Pensions in Finland for Russians, as well as for citizens of the country, are issued by Kela. If a person, by the nature of his work, was associated with agriculture, then to apply for pension payments he needs to contact the Mela department.