If you are elderly and unemployed, you receive your income from the unemployment security scheme. You can receive the unemployment allowance either as a basic or an earnings-related allowance.
Additional days of unemployment allowance
If you are elderly and have been unemployed for more than 500 days, you may be granted additional days of the unemployment allowance until you will retire on an old-age pension.
In order to be eligible for the additional days, you must worked for at least 5 years during the last 20 years. In addition, you must be of a certain age before the 500 days of unemployment allowance are up:
- if you were born between 1955 and 1956, you have to be 60;
- if you were born in 1957-1960, you have to be 61; and
- if you were born in 1961 or later, you have to be 62.
You can receive the unemployment allowance until the end of the month in which you turn 65 years. If you are self-employed, you do not have the right to additional days of the unemployment allowance.
The unemployment allowance, including the additional days of the allowance, is paid out either by an unemployment fund (earnings-related daily allowance) or Kela (basic daily allowance). For more information on the unemployment allowance, contact your own unemployment fund, the Federation of Unemployment Funds in Finland or Kela.
The additional days of the unemployment allowance is also known as the unemployment path to retirement.
Old-age pension for the long-term unemployed at age 62
If you were born in 1957 or earlier and are receiving an unemployment allowance for additional days, you can apply for your old-age pension to start at age 62. If you were born in 1958 or later, you can retire on an old-age pension at your own retirement age. You can select yourself whether you claim the old-age pension or continue on the unemployment allowance until you turn 65.
If you choose to retire at 62, your old-age pension will not be reduced due to early retirement. Instead, you will be paid the amount that you have accrued by the end of the month before your pension begins.
If you are granted an old-age pension based on the additional days of your unemployment allowance, you can work for an unrestricted amount while drawing a pension.
If you are self-employed, you are not entitled to additional days of the unemployment allowance. As a result, you cannot be granted an old-age pension based on unemployment at age 62.