Pension amount doesn't make sense

[O'briain]

Hi everyone

I just checked my pension records and was shocked by how little it was. Ive worked in finland for 9 years with a good salary and then left and yet my pension estimate is less than 500€ a month!!!! Who can live on that in the world today let alone when i reach pension age! Am I missing something?

Thanks

[FinnGuyHelsinki]

Hi everyone

I just checked my pension records and was shocked by how little it was. Ive worked in finland for 9 years with a good salary and then left and yet my pension estimate is less than 500€ a month!!!! Who can live on that in the world today let alone when i reach pension age! Am I missing something?

Thanks

Using https://www.tyoelake.fi/en/pension-record/ gives you the correct amount, it depends on one's earnings and some other variables, but 9 years and 500€ could easily be valid. Considering the median salary, most people earn tens of euros of monthly pension per year. It's definitely worth considering also saving (and investing) on your own, if at all possible.

The "funny" thing is, once a pensioner and no longer working, the taxation is actually higher (compared to a worker with similar earnings), since a pensioner doesn't get to make the same work related deductions.

[O'briain]

Thats chilling. That kind of money definitely puts people under the poverty line. How are current pensioners managing?!

[FinlandGirl]

I just checked my pension records and was shocked by how little it was. Ive worked in finland for 9 years with a good salary and then left and yet my pension estimate is less than 500€ a month!!!! Who can live on that in the world today let alone when i reach pension age! Am I missing something?

You miss that you worked only 20% of your worklife in Finland.

Therefore your pension will only be 20% of what a person who worked the whole life with this salary in Finland gets.

You likely earned and will earn additional pension during the other 80% of your worklife outside Finland.

After a normal 45 year worklife the pension paid is around 60% of the average salary (adjusted for inflation).

if your "good salary" was around 4000€/month, then a normal pension would be 2400€/month and 500€/month sounds correct for the relatively short period of time you worked in Finland.

That kind of money definitely puts people under the poverty line. How are current pensioners managing?!

922€/month is the minimum pension for people in Finland.

Every office cleaner who worked the whole life in Finland gets more than twice as much as you get, since her/his lifetime earning in Finland are more than twice as high as yours.

For a couple of office cleaners that's more than 2000€/month, and at this point the children have long moved out and the mortgage is also fully paid.

A couple with average salaries gets more than 4000€/month pension.

[O'briain]

Thanks FinlandGirl that definitely clarifies a lot of things. You're right my pension amount is for 9 years while for Finns, it would be 4 or 5 times that. I guess as you said, my work outside Finland should complement.

[FinnGuyHelsinki]

I wasn't aware there was income from abroad and therefore additional pension. Should you be so lucky, move to Monaco and pay no taxes