How does pension insurance work?

[Honest]

Businessmen have to take pension insurance. How it works if a businessman close his business after 5 years and starts working as a normal worker? What happens to what he paid for 5 years towards insurance? Will it be counted towards his pension when he retires?

[betelgeuse]

Businessmen have to take pension insurance.

I assume you refer to entrepreneur pension insurance (YEL).

How it works if a businessman close his business after 5 years and starts working as a normal worker?

You terminate the YEL contract and you have TYEL through the new employer.

What happens to what he paid for 5 years towards insurance?

Nothing.

Will it be counted towards his pension when he retires?

Yes.

[Honest]

There is an easier way to not pay the pension. Raise the retirement age to 75. Most of the men would die so not much money will be needed. That's a real possibility that many of us who are in their 20s and 30s will never see any pension. Or at least it will go straight to hoitokoti as we'll be breathing our last breaths there.

[betelgeuse]

Raise the retirement age to 75

the life expectancy is 81 so all will not die till 75. I think within 10 years or so, Finland will declare the abandonment of Pension scheme or as you said will increase the qualification age to 100.

Here's some numbers underlying the 2017 pension reforms.

http://www.etk.fi/wp-content/uploads/Ef ... reform.pdf

It's quite unlikely that the present value of the contributions approaches zero as you claim. I have not researched the topic enough to make my own guess.