Start saving now to make your retirement dreams come true
Every Finn is entitled to a statutory pension but it’s not necessarily enough to cover everything you’d like to do on your retirement.
However, it’s possible to supplement your pension by starting regular saving well before you retire. Money put aside during your career will add security and flexibility to your finances later so that you’ll be free to enjoy your retirement without having to worry about making ends meet. You’ve certainly earned it!
The sooner you start, the smaller the monthly amount you’ll need to save and the more likely you’ll have the means to fulfil your dreams come retirement. Add the effect of compound interest, and even small amounts saved each month can amount to a hefty buffer by the time you retire. Compound interest means that the interest you earn on your savings is regularly added to the principal. As well as earning interest on the savings, you also earn interest on the interest itself.
It’s easy to neglect your savings when retirement feels like a long way away. But your life doesn’t stop at retirement. Today, people are healthier and more energetic than ever, spending an average of 23 years on retirement – so you’ll have a whole new adventure to look forward to. (Source: Työeläke.fi in English)
What type of fund should I save in? And what about the risks?
By choosing an investment fund wisely, you can make a difference in the way the world will be when you retire. If you want to contribute to protecting the environment and human rights as well as better working conditions, find a fund that matches your values. We offer a large selection of funds with specific sustainability criteria.
When you start young, you’ll be able to take more calculated risks to potentially get a higher return because the impact of market movements on your investments tend to average out over time. As you get closer to retirement, you may want to take less risks.
And although it pays off to start saving as early as possible, it’s never too late to get started. In Finland, statistics show that people close to retirement, around the age of 55–65, are in fact the most active savers.
We are happy to help you find the right fund for your risk profile and personal circumstances. You can either reach out to us for personal advice or try our digital investment adviser Nora. We have provided links to both on this page.
What if I need my savings before I retire?
Monthly saving in a fund does not commit you to anything or tie up your money. If you decide to save 10 euros a month, for instance, we’ll transfer the money from your account to the fund of your choice automatically. You can check the performance of your savings in Nordea Mobile or Netbank any time.
It’s up to you if you want to save more, withdraw some or all of your savings or stop saving altogether. You’ll have the money in your account in just a few days. And when the situation allows you to start again, you can always resume monthly saving. Nice and easy, isn’t it?
If you don’t know how much your pension will be when you retire, you can use the pension calculator on the website of the Finnish Centre for Pensions at Työeläke.fi to get an estimateOpens new window. Visit their FAQ section to learn more about earnings-related pension.