Eläkesanasto Ordlista Pension Glossary

life expectancy coefficient

The life expectancy coefficient is applied when the pension starts, that is, when your pension amount is calculated. The coefficient reduces your monthly pension based on how average life expectancy increases.

The life expectancy coefficient is applied to your old-age pension and the already earned pension component (not the projected pension component) of your disability pension.

The aim of the life expectancy coefficient is to keep in check the rising pension costs (caused by the fact that people live longer) and to encourage people to work longer.

Back to Pension Glossary