Amount of pension and taxation

The sum of your earnings-related pension will depend on the length of your career as well as on the amount of income you have earned. Earnings also include overtime pay, in-kind benefits and holiday pay. Earnings-related pension is also accrued by completing certain degree programmes, parental leave and benefits, such as unemployment, sickness and parental allowance. 

Your pension record shows all the earnings you have earned so far. Check your pension record well in advance of retirement. Contact your pension provider if all your employment relationships are not visible on the record.

You can calculate your future pension using the Työeläke.fi pension calculatorOpens in a new window.. You can also, at any given time, request a preliminary estimate of your pension from your pension provider as well as information on how the age at which you retire will affect your pension.

If you have worked as an entrepreneur, your pension will be determined on the basis of the pension contributions you have made from your income. Read more about how pension contributions accrue an old-age pension on the Self-employed person 's pension insurance page.

You can receive a national pension from Kela 

• as an old-age pension if you have not worked or your earnings-related pension accrual is small. Your pension may also be a combination of an employment pension and a national pension.
• a disability pension if you are unable to work and your health does not improve or you do not recover during rehabilitation. During rehabilitation, you will receive a rehabilitation allowance, which is a fixed-term disability pension.

Your year of birth and your state of health will affect the payment of the national pension. The national pension can also be supplemented by a guarantee pension.

Further information:

• Types of national pension - Kela.fiOpens in a new window.
• Guarantee pension - Kela.fi Opens in a new window.

The taxation of pension income differs from the taxation of wage and salary income, as the deductions granted are different from the wage and salary income. The size of these deductions will depend on the size of all your taxable earnings. An additional tax for pension income will be paid for exceptionally large pensions.

When you have received a pension decision from a pension provider or Kela, ask the Finnish Tax Administration for a tax card for your pension income. Without a tax card, the withholding tax on a pension is 40%.

The Finnish Tax Administration will send your tax card directly to your pension provider. After this, the Finnish Tax Administration will send your withholding tax percentage directly to your pension provider each year. 

You can find more information on the tax card for your pension on the Tax Administration website.Opens in a new window.