Key changes to earnings-related pensions in 2024
The retirement age continues to rise. Earnings-related pensions increase by more than 5 per cent. The life expectancy coefficient cuts pensions less in 2024 than in 2023.
A new age group reaches its retirement age
The retirement age rises again with three months for a new age group. For those born in 1960, the retirement age is 64 years and 6 months.
Example: If you were born in January 1960, you can retire on a full old-age pension as of 1 August 2024 when you reach your retirement age of 64 years and 6 months.
Old-age pension: Birth year determines retirement age (tyoelake.fi)
Earnings-related pensions increase by more than 5 per cent
The earnings-related pension index raises earnings-related pensions in payment with around 5.7 per cent in 2024. The increase applies to all earnings-related pensions, that is, the old-age pension, the partial old-age pension, the disability pension, the temporary disability pension (also known as the cash rehabilitation allowance), the survivors’ pension (surviving spouse’s pension and orphan’s pension), the years-of-service pension and the vocational rehabilitation allowance.
For example, if you have received a monthly earnings-related pension of 1,750 euros in 2023, you will get a monthly pension of 1,849.25 euros in 2024.
The accrued earnings-related pension is also adjusted with the wage coefficient. At the time of retirement, the wage coefficient adjusts career lifetime earnings to the level of the year in which the pension begins. In 2024, the increase is around 5.1 per cent.
Indexes protect the pension amount (tyoelake.fi)
The life expectancy coefficient cuts pensions less in 2024 than in 2023
When a pension starts, it is adjusted with the life expectancy coefficient. In 2024, the life expectancy coefficient is 0.94692. The life expectancy coefficient reduces earnings-related old-age pensions by 5.3 per cent for those born in 1962 whose old-age pension starts in 2024 or later. The effect of the life expectancy coefficient can be offset by working longer and by taking out the pension later.
The life expectancy coefficient for 2024 also reduces
- partial old-age pensions of those born in 1963 that start in 2024,
- the earned components of starting disability pensions for those born in 1962 or later, and
- the survivors’ pensions that start in 2024 that are paid for deceased family breadwinners who were born in 1962 or later and who had not yet retired.
The life expectancy coefficient confirmed for 2024 reduces pensions by 0.3 percentage points less than in 2023. The change is because life expectancy for 62-year-olds has declined for three years in a row.
Life expectancy coefficient applied when pension starts (tyoelake.fi)
Change to posting cycle of pension records
As of 2024, the pension record is posted three years after you have last received it by mail or checked it online. Previously, the pension record was sent every three years based on the month in which you were born. As before, you will get the printed pension record more often (once a year) as of about two years before you reach your retirement age, unless you have checked it online. This change applies if you are an employee working in the private sector or a self-employed person.
You can check your pension record online and select the online record as your primary record on the website of your pension provider. The log-in link at tyoelake.fi steers you to the webservice of your own pension provider.
Log in to check your pension record online
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