how much bare minimum one needs per month when retired

[pavi]

Having heard a lot of problems with retirement funds in many nordic countries(except Norway), wondering what one must start to save for the future assuming that there will be no retirement benefits by then from Finnish government.

Am i being paranoid?

[cors187]

The bare minimum may correlate with the maximum National pension pay-out 700e/month.

[pavi]

The bare minimum may correlate with the maximum National pension pay-out 700e/month.

What is this "Maximum National pension payout of 700 €/month"?
Does this mean that all of us get only pre-tax 700 € per month from the age(currently 63) of retirement? This sounds quite low to manage monthly expenses!

[Rick1]

And with the rate of inflation it will probably buy you a piece of bread then. And management,employers, politics complaining about high wages when they shuffle themselves almost every year 20 percent extra in every way they can.

If you do not work, you do not get any extra then minimum. If you work (or have worked) you can see from your paycheck to which company your premium goes. You have to check with them how much you have saved when you are allowed to retire (probably over 70 years).

[pavi]

No, no. There are 2 pension schemes in Finland. The Earnings Related Pension is based on how much you have contributed into the system in your working life. The 2nd is the National Pension scheme which tops up a low earners pension to about 700 euros/month. So every OAP in Finland is eligible to get 700 eu/month regardless of whether they have worked or not in their lifetime.

A couple of years ago they adjusted our past monthly contributions to match the cost-of-living. Or so they thought. It wasn't a heck of alot but there was a slight increase. So if they calculate that you've contributed enough in your pension today to earn 1000 euro/month at retirement, that assessment rises every few years. 700 euro/month this year will not be 700 euro in 10+ years. It will be higher.

So do i understand right, that if one has worked for many years in Finland, he/she is eligible for only one or the other pension in the current system?

This said, there is no guarantee that in 20 years, there will be a pension system as we know it today.

If there is no guarantee that one will get pension, what happens to all the money over the course of the years one has worked that he has contributed? Is it going into a black hole?

Save, save, save but keep the money under your mattress!

Its easy when one is single or married without kids, with kids and all, saving is no more an option for some of us. We are used to certain lifestyle which we are sometimes reluctant to compromise on...sadly! Are people of such category preparing themselves to live poorly and miserably once retired?

[ilya_]

If you get to retirement age, and you're only accumulated, for example, 500 euro/mth, then you are eligible for a top-up from the National Pension scheme of 200 eur/month. The minimum is 700 per month (or whatever the real amount is) at the time of retirment.

This is not completely correct, for a living alone person the top-up will be 630,02 - (500 – 55,62) : 2 = 407,83. So total pension will be 500 + 407,83 = 907,83.

[Rip]

In the current system the relationship between your wage and pension looks like this (what would it be in 30 years time is a another question). Assuming of course you've worked long enough with a corresponding wage (obviously many immigrants will have a short work history).

Various blues are various parts of the pension added together + the lightest blue which would be the housing benefit if you need one. Yellow line is the amount net of taxes. By 3500/€ month wage all the other potential benefits are down to zero, the earnings related pension is directly proportional to wage and continues going up, as well as the net of taxes line.

If you don't have much housing expenses the "housing allowance" part of the figure is eliminated.

Source: http://www.etk.fi/en/service/pension_be ... n_benefits

[Oombongo]

just hope that you will keep working, and stay in good health till you die.
Perhaps, in far future, there will be system like once you are 67 - 70 then government will give you one week in which you can booze, enjoy and womanize as you much as wish before you will be shoved in a gas chamber, since this way is cheaper in a long run.

[Pursuivant]