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Pension reform 2017: What’s new?

Earnings-related pensions were reformed at the beginning of 2017. Some of the new features of the pension reform are the following:

Each age group has its own retirement age.
Everybody earns pension funds at the same rate.
Working longer pays off.
Two new pension forms have been introduced.

The reform affects pension funds that are earned after the reformed earnings-related pension acts have taken effect.

The new retirement ages of the old-age pension apply to persons born in 1955 and later. The retirement age of those born in 1965 or later will be linked to life expectancy as of the year 2030.

Check your retirement age

Select your year and month of birth. The calculator will tell you when you can retire.

Year of birth:

Birth month:

Retirement age

Your retirement age is the first possible age at which you can retire on an old-age pension. The retirement ages are estimates for persons born in 1965 and later.

- Your pension can start at the earliest on - Your estimated time in retirement based on life expectancy.

Life expectancy is the average number of years that a person of a certain age is expected to live if mortality remains unchanged.

Your target retirement age

Because people are living longer, the life expectancy coefficient has been introduced. It reduces the monthly pension you receive. To offset the effect of the life expectancy coefficient, you need to work an additional length of time. This later retirement age is called your target retirement age.

- Your pension can start at the earliest on - Your estimated time in retirement based on life expectancy.

Life expectancy is the average number of years that a person of a certain age is expected to live if mortality remains unchanged.

Your qualifying age for retirement on a partial old-age pension - You can take out a partial old-age pension at the earliest as of -

Work longer and earn a higher pension

Everyone earns pension funds at the same rate

Everyone will earn pensions at a rate of 1.5% of their gross annual earnings. That means that for every euro you earn, your pension funds will grow with 1.5 cents. If you are an employee, you will earn pension funds as of age 17, while the age limit is 18 years if you are self-employed. If you work although you have retired, you will earn new pension funds also at a rate of 1.5% of your annual gross earnings.

Working longer pays off

If you work past your own retirement age, the pension funds that you have accrued will rise by 0.4% for each month that you retire late. For example, if you defer your retirement by one year (12 months), the pension funds you have earned will rise by 4.8%.

Calculate your pension

Use the pension calculator to estimate how much pension you will receive.

New pensions

Partial old-age pension

You can take out part of the pension funds you have earned (either 25% or 50%) in the form of a partial old-age pension. Your age determines when you can take out part of your pension funds (as of age 61).

If you take out part of your pension early, before you reach your retirement age, that part will be permanently reduced by 0.4% for each month from when you start drawing that part of your pension to the month after you reach your retirement age.

If you take out part of your pension late, after you have reached your retirement age, the part you have taken will be permanently increased by 0.4% for each month from your retirement age to when you start drawing your partial old-age pension.

Years-of-service pension

You may have the right to a years-of-service pension if:

(1) you have done mental or physical work that requires great effort for at least 38 years;
(2) your ability to work is reduced;
(3) you were born in 1955 or later; and
(4) you are 63 or older.

The years-of-service pension is the same amount as the amount of pension funds that you have earned by the time that you start getting pension payments.

Did you know that….

You earn pension funds for your total earnings. Before 2017, the pension contributions you paid were deducted from your earned pension. Now you earn pension funds also for the contributions you pay.

If you are between 53 and 62 years old during a transition period from 2017 to 2025, you earn pension funds at a rate of 1.7 per cent per year, and pay a contribution rate that is 1.5 per cent higher than that of other wage earners.

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