Working while drawing a pension
While retired, you may work to some degree as an employed or a self-employed. You accrue new pension from earnings you receive alongside your pension, at a rate of 1.5 per cent per year until you turn 68.
Working for wages alongside your old-age pension
While receiving old-age pension or early old-age pension, you may enter into new employment or begin self-employment. If you become self-employed, you can take out voluntary YEL insurance for yourself.
Pension that your have accrued alongside old-age pension becomes payable upon application as of the month following the month in which you turn 68.
Disability pension and work
If you are considering working in gainful employment while receiving a disability pension, please clarify with your own pension provider how much you are allowed to earn.
In order to aid the return to work of people currently receiving a disability pension, a temporary Act has been introduced that will remain in force during the period 1 January 2010 - 31 December 2013. According to this Act, a person receiving disability pension may earn at least the amount of the guarantee pension, i.e. EUR 713.73 per mont (in 2012).
If the payment of your pension has been dormant due to your work, you have to inform your pension provider when your work ends in order for your pension to be paid again. Your pension may be left dormant for at least three months and at most two years at a time.
The payment of your pension may be interrupted or terminated alltogether due to your earnings. Alternatively, your pension may be turned into a partial disability pension.
Unemployment pension and work
You may work to some degree while receiving an unemployment pension without your earnings affecting the payment of your pension. However, there is a maximum earnings limit of EUR 675.98 per month (in 2012). If you exceed the limit, you have to report your work to your pension provider, who will then interrupt the payment of your pension. The payment will continue when your earnings limit is no longer exceeded. Your unemployment pension will be cancelled alltogether if its payment has been cancelled for more than a year.
The earnings limit is index-linked and was reported to you when you received your pension decision. Earnings include monetary wages and benefits in kind or income from self-employment. Only earnings from work affect your unemployment pension, not capital income.
Internal links: Insurance
External links: The Farmers’ Social Insurance Institution, The Social Insurance Institution