When you retire
When you have reached the age for old-age pension, you can retire flexibly according to your health and whether you still feel willing to work. The later you start to withdraw from your earnings-related pension, the larger it is.
Your old-age pension age is determined according to your year of birth. If you were born in 1954 or earlier, you can retire and receive an old-age pension at the earliest when you reach the age of 63. If you were born in 1955 or after this, your old-age retirement age will rise by 3 months each year until it is 65.
The minimum retirement age for people born between 1962 and 1964 is 65. The retirement age for people born in 1965 and after this is tied to life expectancy. Your retirement age will be confirmed the year you reach the age of 62.
If you were born in 1955 or later, and have had an exceptionally wearing or long career or your working ability has declined, you can apply for a years-of-service pension at the age of 63.
When you have reached the age of 61, you can receive a partial early old-age pension. You can decide whether you want to keep working at the same time as your receive this pension. The advance on your pension permanently reduces the sum you receive as monthly pension.
If you are employed by the State, municipality, church or Kela, your retirement age may deviate from the above.
If you have not been employed or if your accrued earnings-related pension is small, your will receive a national pension as an old-age pension when you reach the age of 65. Your pension may also be a combination of an employment pension and a national pension. If you have been unable to work before your retirement age, a national pension can also be in the form of a disability pension.
Your year of birth will affect the payment of a national pension. People born before 1958 can apply for an early old-age pension at the age of 63 from Kela. People born between in 1958 and 1961 can apply for an early old-age pension at the age of 64 from Kela. People born in 1962 and after this will not be able to receive an early national pension.
People born before 1958 who have been long-term unemployed can also retire and receive a national pension at the age of 62 without their monthly pension dropping due to the advance. The age limit for people born in 1958–1961 is 64. People born in 1962 and after this who have been long-term unemployed cannot receive a national pension before they reach the age of 65.
If you receive a disability pension from Kela, your pension will automatically change to a national pension when you reach the age of 65.
You can apply for pension by using your own pension provider's online service. When you submit the application online, the application is processed faster. You can use the same application form for both, for the earnings-related pension and for the national pension.
If your own pension provider does not provide an online application service or if you are unable to use an online service, you can submit the application by using a paper form. You can also use a form that is filled online and then printed. A paper form can be submitted to any pension provider, to Finnish Centre for Pensions or to Kela.
Apply for pension about two months before you plan to retire. Since old-age pension cannot start while you are employed, make sure that you also resign in good time.
The sum of your earnings-related pension will depend on the length of your career as well as on the amount of income your have earned and on pension contributions you have paid during this time. Earnings also include overtime pay, in-kind benefits and holiday pay. Also certain benefits, such as unemployment benefits, sick leave allowance and parental leave allowance will increase your earnings-related 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.
You can view your pension record at any time online or ask your pension provider to send it to you. You can also get a calculated estimate on your coming pension. Check your pension record to ensure that all your past employment relationships are listed on it. Contact your pension provider if all your employment relationships are not visible on the record.
If your earnings-related pension remains small or you do not have an earnings-related pension at all, Kela will pay you a national pension. You can receive a guarantee pension to supplement this, which will guarantee a certain minimum pension. The size of your national pension will be influenced by the amount of earnings-related pension you receive and whether you live alone or in a relationship.
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. You can submit the request online.
The tax authority will send your tax card directly to your pension provider. If you still receive a salary, you will need separate tax cards for your pension and your salary. After this, the Finnish Tax Administration will send your withholding tax percentage directly to your pension provider each year.
Different deductions will be granted for your pension income than for earned income. The tax authority will make a pension-income deduction ex officio. 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.
You may continue to work in an employment relationship or as an entrepreneur when you are a pensioner. However, if you receive a salary or have business income, this will influence the amount of disability pension you receive.
As a pensioner, you can work for your previous employer or new employers. You can continue business activities as an entrepreneur or establish a new company.
Working during retirement does not reduce the pension paid to you. On the contrary, it increases it. Pension insurance contributions must be paid from your salary if you work during retirement until you reach the age of 68–70. The maximum age for this insurance obligation is determined by your year of birth. If you work as an entrepreneur after you have retired, insurance contributions are voluntary.
When you reach the maximum 68–70 age for insurance obligation, submit a new application for your pension. Because, the additional income will have increased your pension. The amount of time you have worked and your earnings will have been limited, if you have been receiving a rehabilitation subsidy or are on a disability pension, a years-of-service pension or part-time pension.
If you want to continue working after the insurance obligation concerning you has ended, working will no longer increase your pension.