Life expectancy coefficient applied when pension starts

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. People are living longer, and this means we have greater life expectancy. Greater life expectancy has to be accounted for when calculating pensions.

The life expectancy coefficient is determined for each age group at age 62. It will be permanently applied to the pension payments you get.

Your birth  year Life expectancy coefficient
1947 1.00000
1948 0.99170
1949 0.98689
1950 0.98351
1951 0.97914
1952 0.97552
1953 0.97200
1954 0.96800
1955 0.96344
1956 0.96102
1957 0.95722
1958 0.95404
1959 0.94984
1960 0.94659
1961 0.94419

Pension on pension record adjusted with life expectancy coefficient

The pension amount stated on your pension record has been adjusted with the life expectancy coefficient. The Finnish Centre for Pensions projects the coefficients based on Statistics Finland’s population forecasts.

Five years before you reach your retirement age, your pension record will include an estimate of your target retirement age. The target retirement age indicates how long you need to defer retirement in order for the increment for late retirement to increase your pension as much as the life expectancy coefficient cuts it at the retirement age of your age group. The estimate of your target retirement age is specified in the year in which you (as an employee or a self-employed person) turn 62.

Check your pension record

Life expectancy coefficient and disability pensions

The life expectancy coefficient is also applied to disability pensions, but to a more limited degree. The coefficient is applied to the pension you have earned up to the time of retirement, but it is not applied to the projected pension component, that is, the computational pension you earn from the time of your retirement on a disability pension to when you reach your retirement age.

The life expectancy coefficient confirmed for the 62-year-olds in the year in which you retire on a disability pension will be applied to your disability pension.

The life expectancy coefficient is applied only once. When your disability pension becomes an old-age pension, the coefficient is not applied again.