id	author	title	date	pages	extension	mime	words	sentences	flesch	summary	cache	txt
cord-007303-wuuhlowd	Valkonen, Tarmo	The Finnish Pension System and Its Future Challenges	2020-04-01		.txt	text/plain	4066	201	54	The negative experiences of war-time infl ation and political resistance led to the 1957 pension reform that included abandonment of pre-funding, equalisation of pensions, introduction of income-and wealth-tested The Finnish pension system has succeeded in gaining high social, and reasonable fi nancial sustainability. The balance between reaching the ambitious redistribution goals and minimising labour supply distortions is achieved with tax-fi nanced, income tested basic pensions, income-tested basic pensions and a strong link between wage income and accrued pensions for middle-and high-income workers in the earnings-related schemes. By law, the earnings-related pension scheme follows the defi ned benefi t rule, where contribution rates adjust to shocks that weaken the contribution base or increase expenditures. Key elements were the harmonisation of the benefi t rules of different earnings-related schemes, a tighter link between earned income and accruals, introduction of fl exible old age retirement, gradual abolishment of several early retirement schemes and the introduction of a link between life expectancy of the retiring cohort and the pensions.	./cache/cord-007303-wuuhlowd.txt	./txt/cord-007303-wuuhlowd.txt