The partial old-age pension is a flexible pension. You can retire on a partial old-age pension when you have turned 61 years. The partial old-age pension continues until you retire on the old-age pension.
You can work while you draw a partial old-age pension. There are no restrictions as to how much you can work or earn. Alternatively, you can stop working altogether.
If you are self-employed and you continue working in your own business while receiving a partial old-age pension, you must have valid insurance under the Self-employed Persons’ Pensions Act.
When you retire on a partial old-age pension, you can draw 25% or 50% of the pension that you have accrued up to that time. Retiring on an old-age pension will permanently reduce your future pension.
Try out the calculator that will give you a general estimate. You will find more detailed information on and help in your life situation on your pension provider’s website. Instructions continue after the calculator.
The calculator also calculates how much your partial old-age pension affects your later old-age pension
The pension is in the price level of the ongoing year.
Earliest possible age at which you can take out the partial old-age pension
Test how the age when you start drawing the partial old-age pension affects the estimate.
The pension is in the price level of the ongoing year.
Retirement age
Test how the age at which you retire affects your pension estimate.
This calculator will calculate the amount of your partial old-age pension and the amount of your full old-age pension after you’ve taken out a partial old-age pension. For comparison, the calculator also calculates how much your full old-age pension would be if you had not taken out a partial old-age pension.
If you are 55 or older this year, the calculator will also calculate the amount of your national and guarantee pensions, if you qualify for them. You can estimate your pension using this calculator if you were born between 1956 and 2004.
The calculator will calculate your pension based on the wage you’ve entered into it and the laws that are valid in 2022. To get an estimation that is as close to the truth as possible, enter the amount of your earnings-related pension that you’ve earned by the end of 2021. The amount is stated on your pension record. Your final pension cannot be calculated until just before you retire.
If you are a wage earner, your pension will start to grow as of age 17. If you are self-employed, the age limit is 18. The calculator will calculate your earned pension as of age 17 and under the assumption that you will not retire early. The calculator will calculate your pension to the age of 70 at the most, at which time you can no longer earn more pension.
The calculator calculates your pension under the assumption that the earned pension you have entered into it has been adjusted with the life expectancy coefficient and does not include an increment for late retirement. If you have already reached your retirement age, the pension you have earned may include an increment for late retirement.
Calculator’s assumptions on wage development and extended life expectancy
You can select between two different future general wage developments in this calculator. The option in which the wage level remains unchanged corresponds to the pension record’s baseline projection of your pension. The option in which the wage level grows corresponds to the Finnish Centre for Pensions’ baseline assumption in its long-term projection.
According to that baseline assumption, the earnings level grows, real term, by 1.5 per cent each year. The near-future economic outlook has been taken more closely into account in the calculator. The wage coefficient that your pension is adjusted with to the level of the year in which your pension begins is calculated based on the general wage and price development. Long-term, the real-term annual development is around 1.2%.
The calculator assumes that your earnings grow each year in line with the wage coefficient. That is why your earnings grow slightly less than the average wages of wage earners since the wage coefficient takes into account 80% of the general growth in earnings.
The calculator gives your estimated pension in current prices. The euro amount thus reflects the effect of the wage coefficient adjustment and the growth of your own earnings on your pensions’ purchasing power.
The extended life expectancy that affects the projected retirement ages and life expectancy coefficient are based on the population forecast of Statistics Finland.
The assumptions used by the calculator regarding the life expectancy coefficient, the retirement age and the general earnings and price development are listed in this excel file.
Retirement age for partial old-age pension
The retirement age for a partial old-age pension is 61 years if you were born before 1964. If you were born in 1964, the retirement age is 62 years. If you were born in 1965 and later, your retirement age is linked to changes in life expectancy. The retirement age is based on the current projection of the extending life expectancy. The projection is based on the 2021 population projection of Statistics Finland. Read more about how the retirement ages are determined
Retirement age for old-age pension
Each birth year group has its own retirement age. If you were born in 1965 and later, your retirement age is based on the currently estimated extended life expectancy.
Earnings-related pension accrual and age at when your insurance obligation ends
Your earnings-related pension grows by 1.5 per cent of your annual earnings. If you are between 53 and 62 years old, your pension will grow by 1.7% of your annual gross wages between the years 2017 and 2025. If you retire late (after you have reached your retirement age), your pension will be increased by an increment for late retirement (0.4% for each month that you defer retirement). Pension accrues also for work you do while receiving a partial old-age pension.
The age when you stop paying pension insurance and your pension no longer grows will rise from 68 to 69 (for those born between 1958 and 1961) and 70 (for those born in 1962 and after).
Calculating a partial old-age pension
Your partial old-age pension is based on the earnings-related pension that you have accrued by the end of the year before the year in which you take out a partial old-age pension. When you retire on a partial old-age pension, you can draw 25% or 50% of the pension that you have accrued up to that time. Retiring on an old-age pension early will permanently reduce your future pension by 0.4% for each month from when you start drawing your pension to the month after you reach your retirement age.
Life expectancy coefficient
The accrued pension is adjusted with the life expectancy coefficient, which depends on your year of birth. The life expectancy coefficient for your age group will be confirmed when you turn 62 years. If you start drawing your partial old-age pension at age 61, the life expectancy coefficient confirmed for the year in which your partial old-age pension starts is used.
For the younger age groups, the life expectancy is a projection. The projections are based on the 2021 population projections of Statistics Finland.
Wage coefficient
When the amount of your starting pension is calculated, your income from work and self-employment during your working life will be adjusted with the wage coefficient to the level of the year in which you retire. The wage coefficient ensures that the pension you have earned during your working life retains its value. The wage coefficient takes into account 80% of the changes the index of wage and salary earnings and 20% of the changes in the consumer price index.
Kela pensions
You can get a national or guarantee pension from Kela if you have no or only a small earnings-related pension. If you get only a partial old-age pension, you cannot get a Kela pension. That is why the calculator estimates the Kela pension only for the old-age pension. Every euro of earnings-related pension that you get reduces your full national pension by 50 cents until there is no national pension left to pay. Your national pension depends on whether you live alone or with a spouse.
You get a guarantee pension if your total pension is below the full amount of the guarantee pension. Apart from the earnings-related pension, the calculator does not consider other pensions that may affect your national or guarantee pension.
When your national pension amount is calculated, the reduction for early partial old-age pension is added to the amount of your earnings-related pension. That way, the national pension does not compensate for the reduction of the earnings-related pension caused by early retirement. The increment for late retirement is not considered when calculating your national pension, so the national pension does not reduce as a result of the increment for late retirement.
The calculator takes all other components of your earnings-related pension into account as factors reducing your national pension. When calculating the guarantee pension, the earnings-related pension paid is considered in full.
In the national pension scheme, the retirement age is 65 years. As of those born in 1965, the retirement age will be linked to life expectancy, just as in the earnings-related pension scheme. The calculator counts the reduction for early retirement (0.4% per month that you take the pension early) for both the national and the guarantee pension if you retire before you reach the retirement age of the national pension. The calculator also calculates an increase for late retirement if you retire after reaching the retirement age of the national pension. If you were born before 1962, the increment for late retirement is 0.6% for each month that you postpone your retirement and 0.4% if you were born in 1962 or after.
The calculator calculates your Kela pension providing you have lived long enough in Finland to qualify for a full national pension (80% of the time between you turned 16 and when you retire).
In the future, the national and the guarantee pension are expected to develop in line with the price index. In real terms, the Kela pension is at the current level in the calculator.
For more information on the national pension and the guarantee pension, go to Kela’s website.
When can I not be granted a partial old-age pension?
You cannot get a partial old-age pension if you get any other earnings-related pensions from Finland based on your work, the farmers’ early retirement aid or if your disability pension is dormant because you are working.
Retiring early will permanently reduce your pension
If you take out a partial old-age pension early, note that the part you are taking out will be permanently reduced by 0.4% for each month from when you start drawing your pension to the month after you reach your retirement age. Consider carefully before retiring early as your pension will be reduced for the rest of your life.
Taking out 50% of your accrued pension as a partial old-age pension will reduce your future pension twice as much as if you take out 25% of your accrued pension. This is because when you take out 50% early, the reduction for early retirement applies to a larger part of your pension.
If you choose to take 25% of your pension, you can later increase it to 50%. If you take 50%, you cannot later reduce that to 25%.
Before you apply for a partial old-age pension, contact your pension provider to find out how much pension you will get and the tax administration to find out how your earnings and your pension will be taxed.
If you work while drawing a partial old-age pension, you will earn additional pension for your work.
When you reach your retirement age, you can retire on a full old-age pension if you so wish. In that case, you must resign from your work. Your full old-age pension will then consist of your reduced partial old-age pension taken out early and the remaining pension you have earned.
When calculating the amount of your national pension (disability or old-age pension) when you are drawing a partial old-age pension, your partial old-age pension is taken into account in full (as if it were not deducted for early retirement). That means that, when calculating your Kela pension, the partial old-age pension that is considered when calculating your national pension is higher than the pension you are paid.
Partial old-age pension after reaching your retirement age
If you retire on a partial old-age pension after you have reached your retirement age, the part that you take out will be permanently increased by 0.4% for each month from your retirement age to when you start drawing your partial old-age pension.
You can also postpone drawing your full old-age pension after reaching your retirement age even if you have drawn a partial early old-age pension. If you defer your old-age pension, the part of the pension that you have not drawn early will be increased with an increment for late retirement of 0.4% for each month that you have deferred retirement.
Partial old-age pension if you are unemployed
Getting a partial old-age pension does not prevent you from getting an unemployment allowance, nor does it reduce the amount of that allowance. The unemployment allowance is determined as usual, that is, based on the earnings you had before you became unemployed.
The partial old-age pension may affect the labour market support in those rare cases where the labour market support is means-tested. In such cases, the accrued earnings-related pension and the partial old-age pension are very small. Taking out a partial old-age pension is not worth it.
Your old-age pension will not be increased with the increment for late retirement for the months during which you are paid the unemployment allowance.
Partial old-age pension if you are ill
Check with Kela how your sickness allowance is determined if you fall ill while you are on a partial old-age pension and you apply for a sickness allowance or if you apply for a partial old-age pension while you get a sickness allowance.
Changing age limits
If you were born in 1964, you can retire on a partial old-age pension at age 62. If you are younger than that, you can retire on a partial old-age pension three years before you reach your retirement age.
Taxation of partial old-age pension
The partial old-age pension is pension income for which you must pay personal income tax. You get a deduction from pension income for the partial old-age pension.
If you retire on a part-time pension and your income from work are reduced, your tax and contribution rates will also be reduced. Correspondingly, your tax rate will increase if your previous income level remains the same and you receive a partial old-age pension on top of that.
If you receive a partial old-age pension and continue working, you pay tax and contributions on your wage. The tax and contribution rates when you have a combined pension and wage income is usually smaller than if your total income consisted of only a wage or only a pension.
For more information on taxation, contact the Tax Administration.
The table below presents the net income and tax and contribution rates of a person receiving a partial old-age pension on different income and pension levels in 2022. The last column of the table shows what the tax and contribution rates would be if the person were to receive only a wage and no partial old-age pension.
The person is assumed to be between 53 and 62 years old. Deductions based on work and the average municipal tax (20.02%) have been taken into account. The Church tax has not been taken into account.
| Partial old-age pension | Wage while receiving a partial old-age pension | Total gross income | Net income | Tax and contribution rate | Tax and contribution rate of wage without partial old-age pension- % |
|---|---|---|---|---|---|
| 400 | 0 | 400 | 400 | 0,0 | 0,0 |
| 400 | 500 | 900 | 849 | 5,6 | 10,2 |
| 400 | 1000 | 1400 | 1294 | 7,6 | 10,2 |
| 400 | 1500 | 1900 | 1685 | 11,3 | 11,8 |
| 400 | 2000 | 2400 | 1946 | 18,9 | 17,7 |
| 400 | 3000 | 3400 | 2479 | 27,1 | 25,4 |
| 600 | 0 | 600 | 600 | 0,0 | 0,0 |
| 600 | 500 | 1100 | 1049 | 4,6 | 10,2 |
| 600 | 1000 | 1600 | 1489 | 6,9 | 10,2 |
| 600 | 1500 | 2100 | 1810 | 13,8 | 11,8 |
| 600 | 2000 | 2600 | 2078 | 20,1 | 17,7 |
| 600 | 3000 | 3600 | 2604 | 27,7 | 25,4 |
| 800 | 0 | 800 | 800 | 0,0 | 0,0 |
| 800 | 500 | 1300 | 1247 | 4,0 | 10,2 |
| 800 | 1000 | 1800 | 1617 | 10,2 | 10,2 |
| 800 | 1500 | 2300 | 1930 | 16,1 | 11,8 |
| 800 | 2000 | 2800 | 2216 | 20,9 | 17,7 |
| 800 | 3000 | 3800 | 2721 | 28,4 | 25,4 |
| 1000 | 0 | 1000 | 999 | 0,1 | 0,0 |
| 1000 | 500 | 1500 | 1374 | 8,4 | 10,2 |
| 1000 | 1000 | 2000 | 1739 | 13,0 | 10,2 |
| 1000 | 1500 | 2500 | 2047 | 18,1 | 11,8 |
| 1000 | 2000 | 3000 | 2334 | 22,2 | 17,7 |
| 1000 | 3000 | 4000 | 2838 | 29,1 | 25,4 |
| 1200 | 0 | 1200 | 1122 | 6,5 | 0,0 |
| 1200 | 500 | 1700 | 1490 | 12,4 | 10,2 |
| 1200 | 1000 | 2200 | 1860 | 15,4 | 10,2 |
| 1200 | 1500 | 2700 | 2183 | 19,1 | 11,8 |
| 1200 | 2000 | 3200 | 2438 | 23,8 | 17,7 |
| 1200 | 3000 | 4200 | 2954 | 29,7 | 25,4 |
| 1400 | 0 | 1400 | 1240 | 11,4 | 0,0 |
| 1400 | 500 | 1900 | 1609 | 15,3 | 10,2 |
| 1400 | 1000 | 2400 | 1966 | 18,1 | 10,2 |
| 1400 | 1500 | 2900 | 2312 | 20,3 | 11,8 |
| 1400 | 2000 | 3400 | 2551 | 25,0 | 17,7 |
| 1400 | 3000 | 4400 | 3069 | 30,3 | 25,4 |
| 1600 | 0 | 1600 | 1358 | 15,1 | 0,0 |
| 1600 | 500 | 2100 | 1730 | 17,6 | 10,2 |
| 1600 | 1000 | 2600 | 2101 | 19,2 | 10,2 |
| 1600 | 1500 | 3100 | 2416 | 22,1 | 11,8 |
| 1600 | 2000 | 3600 | 2664 | 26,0 | 17,7 |
| 1600 | 3000 | 4600 | 3177 | 30,9 | 25,4 |
Part-time pensions in payment
In connection with the 2017 pension reform, the partial old-age pension replaced the part-time pension. If you are getting a part-time pension and continue working part-time as agreed, your part-time pension will continue to be paid as usual. Part-time pensions that have already been granted may be in payment until the end of 2023.
If you are made redundant while getting a part-time pension, immediately notify the earnings-related pension provider that pays out your part-time pension.