How a partial old-age pension affects the general social security benefit from Kela

From 1 May 2026 onwards, the partial old-age pension will be considered income when calculating the new general social security benefit paid by Kela. This may reduce the amount of the general social security benefit. Find out the effect before you apply for a partial old-age pension.

The basic unemployment allowance and the labour market subsidy paid by Kela will be replaced by the new general social security benefit from 1 May 2026 onwards. In the future, the partial old-age pension will be considered income when calculating the means-tested general social security benefit. This means that the partial old-age pension may reduce the amount of the general social security benefit paid by Kela.

Keep this in mind before you apply for a partial old-age pension. If you were born in 1964, you will turn 62 this year and thus qualify for the partial old-age pension.

Until now, the partial old-age pension has only rarely affected the labour market subsidy and has not impacted the basic unemployment allowance.

The partial old-age pension does not and will not affect the earnings-related unemployment allowance. It is usually determined based on your employment history before becoming unemployed.

The effect of partial old-age pension on the social security benefit

The general social security benefit will be the same as the labour market subsidy and the basic unemployment allowance: 37.21 euros per day (or €800 per month on average) in 2026. However, the amount may be reduced through means-testing.

Means testing applies if your capital income and other income (excluding wage income but including the partial-old-age pension) exceed the means-testing income limit of 311 euros per month (gross).

In such cases, 50 per cent of any income above the means-testing income limit will be deducted from your general social security benefit.

Example:

  • You receive a partial old-age pension of €411 per month.
  • The amount exceeding the income limit is €100 (€411 − €311 = €100).
  • Of this sum, 50% (or €50) is deducted from your general social security benefit.
  • This means your general social security benefit will be €750 (€800 − €50 = €750).

The new rules also apply if you are already receiving a partial old-age pension

If you are already receiving a partial old-age pension and start receiving the general social security benefit on or after 1 May 2026, your general social security benefit will be means-tested. This means that your benefit may be reduced, thereby reducing your overall income.

Your partial old-age pension continues until you retire on a full old-age pension or are granted a disability pension. Your partial old-age pension cannot be discontinued or suspended. However, it can be cancelled within three months of being granted.

You can find more information on the general social security benefit on Kela’s website. Contact your earnings-related pension provider in matters relating to your own pension.

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