The longer you work and the later you retire, the higher your earnings-related pension will be. If you retire late, your old-age pension will grow in two ways: via the increment for late retirement and the new pension you earn while working.
Are you looking for information about working while getting a pension? Go to the page Combine work and retirement
Increment for late retirement raises your total accrued pension
Your old-age pension will increase by 0.4 per cent for each month that you retire late, that is, for each month past the month in which you reached your retirement age. For example, if you have accrued a pension of 2,000 euros, your pension increases by 8.00 euros for each month that you retire late.
The increase is calculated on the pension you have earned throughout your working life up to the end of the month before you start drawing your pension. This means that also the pension you have accrued for work done after you have reached your retirement age is included in the calculation.
The increase for late retirement does not apply to periods during which you receive unemployment benefits. You also do not accrue increment for late retirement if you are already receiving a disability or old-age pension and you are working alongside the pension.
You were born on 15 June 1960. Your retirement age is 64 years and 6 months, which you reach on 15 December 2024.
You retire on an old-age pension on 1 June 2025. By the end of the previous month, that is, by 31 May 2025, you have earned a monthly pension of 1,750 euros.
The period from 1 January 2025 to 31 May 2025 is five months, so you will get an increment for late retirement for five months.
5 months × 0.4% = 2%
Your increment for late retirement is 2% of the pension you have earned by 31 May 2025.
2% × €1,750 = €35
Your increment for late retirement is added to your monthly pension amount.
€1,750 + €35 = 1,785 euros.
Your final pension amount will be slightly smaller as it will be reduced by the life expectancy coefficient.
If you were born in 1955 or later, your age group will not only have its own retirement age but also a computed target retirement age. Your target retirement age is slightly higher than your retirement age. For example, if you were born in 1960, your target retirement age is 65 years and 9 months.
If you defer your retirement until your target retirement age, the increment for late retirement that you get offsets the reduction to your pension caused by the life expectancy coefficient. In other words, your pension will be of the same amount as the pension you have accrued by your retirement age, without the cutting effect of the life expectancy coefficient.
New pension for work
If you work past your retirement age, you earn new pension in addition to the increment for late retirement. You earn new pension to the amount of 1.5 per cent of your annual earnings.
You earn new pension up to the age when your insurance obligation ends. This is about five years after you reach your retirement age. After that you can continue working and, for example, draw a pension at the same time, but you no longer earn new pension for that work.
Use the pension calculator to estimate how your pension will grow if you continue working and retire late.
Example: How will your pension increase if you continue to work?
The following table shows how your pension will increase if you continue to work beyond your statutory retirement age. The example in the table considers both the increment for late retirement and the pension you have earned while working. You can also use the pension calculator at the bottom of the page to assess your situation.
Example person:
- Born in 1960
- Reaches their statutory old-age retirement age (64 years 6 months) in 2024
- Has a full working career (39 years 6 months to the statutory retirement age)
- Continues to work for the same salary until retirement
- Assuming that own earnings or general price and earnings levels remain unchanged
Earnings-related pension at statutory retirement age and when working continues for 6 months, 1 year, 2 years, 3 years, 4 years and 5 years past the statutory retirement age at different salary levels, €/month
| Age | Working continues for | €2,500 /month | €3,000 /month | €3,500 /month | €4,000 /month | €4,500 /month | €5,000 /month |
|---|---|---|---|---|---|---|---|
| 64 years 6 months | – | 1,429 | 1,715 | 2,000 | 2,286 | 2,572 | 2,858 |
| 65 years | 6 months | 1,481 | 1,778 | 2,074 | 2,370 | 2,666 | 2,963 |
| 65 years 6 months | 1 year | 1,535 | 1,842 | 2,148 | 2,455 | 2,762 | 3,069 |
| 66 years 6 months | 2 years | 1,644 | 1,973 | 2,301 | 2,630 | 2,959 | 3,288 |
| 67 years 6 months | 3 years | 1,756 | 2,108 | 2,459 | 2,810 | 3,162 | 3,513 |
| 68 years 6 months | 4 years | 1,872 | 2,247 | 2,621 | 2,996 | 3,370 | 3,745 |
| 69 years 6 months | 5 years | 1,970 | 2,364 | 2,758 | 3,152 | 3,546 | 3,940 |
The national pension can supplement pension provision if a pensioner living alone receives less than €1,617.13 per month in earnings-related pension. For a pensioner with a partner, the corresponding income limit is €1,449.13 per month. The part of the increment for late retirement is not considered as a reduction in the national pension.
Use the calculator to estimate your old-age pension
You can estimate your old-age pension using the pension calculator.