Old-age pension: Birth year determines retirement age

You can retire on an old-age pension at a certain age. The old-age pension is payable both as an earnings-related pension and a national pension.

The old-age pension is the earnings-related pension you have accrued during your working life. The older you are when you retire, the higher your pension will be.

You can retire on an old-age pension at the retirement age of your birth year. In other words, your year of birth affects when you can retire on an old-age pension.

Check your retirement age

Select your year of birth. The calculator will tell you your retirement age.

Retirement age ?

Your retirement age is the first possible age at which you can retire on an old-age pension.

- Your estimated time in retirement based on life expectancy. ?

Life expectancy is the average number of years that a person of a certain age is expected to live if mortality remains unchanged. In Finland, life expectancy is calculated by Statistics Finland.

-
Your target retirement age ?

Because people are living longer, the life expectancy coefficient has been introduced. It reduces the pension you receive. To offset the effect of the life expectancy coefficient, you need to work an additional length of time. This later retirement age is called your target retirement age.

- Your estimated time in retirement based on life expectancy. ?

Life expectancy is the average number of years that a person of a certain age is expected to live if mortality remains unchanged. In Finland, life expectancy is calculated by Statistics Finland.

-

Retirement age rises gradually

Retirement ages for people born before 1965 (old-age pension)
Year of birth Retirement age Age when insurance obligation ends
1954 or earlier 63 68
1955  63 years and 3 months 68
1956 63 years and 6 months 68
1957 63 years and 9 months 68
1958 64 69
1959 64 years and 3 months 69
1960  64 years and 6 months  69
 1961  64 years and 9 months  69
1962-1964 65 70
1965 and later Not yet decided but it will be linked to life expectancy. The age limit will rise by no more than two months per birth year as of the year 2030. The age when the insurance obligation ends will be five years above the retirement age. 70

You can earn a pension up to the age when your insurance obligation ends. This “upper” age limit is five years above your retirement age.

You can continue working after you have reached the age when your insurance obligation ends, but you do not accrue more pension for that work.

The statutory insurance obligation applies to both employees and self-employed persons.

Drawing your old age pension

You have to apply for your old-age pension.

If you are an employee, you have to resign from your work before you start drawing your old-age pension. If you wish to do some work while drawing your old-age pension, your employer has to insure you for that work. You can apply to your pension provider for this new pension to be paid once you have reached the age when your insurance obligation ends (see table above). There is no limit to how much you can earn while for work that you do in retirement.

If you are self-employed, you can claim your old-age pension an continue your self-employment. In that case, you will not be able to continue paying statutory pension insurance. If you wish, you may, but you do not have to, insure your continued work with voluntary pension insurance.

Old-age pension for public sector employees

If you work in the public sector and retire on an old-age pension you may have a so-called occupational or individual retirement age.

The individual retirement age is usually between 63 and 65 years. It did not change as a result of the 2017 pension reform. The lower occupational retirement ages, however, will rise gradually so that if you reach your occupational retirement age in 2018, you will have to work for 3 months more; if you reach it in 2019 for 6 months more, and so forth.

In public sector employments that have ended, the retirement age is 65 years. If you take out your pension before you turn 65, the pension you have earned before 1995 will be reduced.

Converting other pensions to an old-age pension

Your disability pension will be automatically converted to an old-age pension

  • when you reach the retirement age of your age group if your disability begins in 2017 or later;
  • at age 63 if your disability began between 2006 and 2016;
  • at age 65 if your disability began in 2005 or earlier.

You have earned new pension as of 2005 for work done while drawing a disability pension. You have to apply for this pension as it is not paid out automatically. You can submit your application only once your disability pension turns into an old-age pension, providing you have stopped working. If you continue working, you can apply for the pension once you stop working.

If you are drawing a partial old-age pension, you can retire on a full old-age pension when you reach the retirement age of your age group. You also have to resign from your main job. If you take out your old-age pension late, that is, after reaching your retirement age, the part of your pension that you have not drawn will be increased.

If you are drawing a part-time pension, you have to apply for you old-age pension separately between  your retirement age or the age at which your insurance obligation ends.

Retirement age of the national pension

The retirement age under the national pension scheme is 65 years. If you qualify for a national pension, you can choose to take it out early, as of age 63. However, if you were born between 1958 and 1961, you can take out an early national old-age pension as of age 64.

If you take out your national old-age pension early, it will be permanently reduced by 0.4% for each month from when you start drawing the pension to the month after you turn 65. If you wait to take out your national old-age pension at age 65, it will not be reduced.

In the future, when the retirement age of the old-age pension of the earnings-related pension system is linked to life expectancy as of those born in 1965, the retirement age of the national old-age pension will correspond to that of the earnings-related old-age pension.