Ilmarinen
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Self-employed
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Social security and pension for the self-employed
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Self-employed person’s pension
Self-employed person’s pension
Your YEL income decides the size of your pension. You can retire just like employees.
This is how your pension accrues as a self-employed person
Your pension is based on all your earnings from employment and entrepreneurial activities during your career. You can also accrue pension when you complete your studies or draw an unemployment allowance or other social benefits.
As an entrepreneur you take care of your own pension cover. A self-employed person insured under YEL accrues pension at a rate of 1.5 per cent of the annual YEL income. An exception to this are persons aged 53–62 years, who accrue pension at a rate of 1.7 per cent of the YEL income during the transition period 2017–2025.
When can I retire?
As a self-employed person, you can retire just like an employee. In addition to the old-age pension, you can retire on a partial old-age pension. If your work ability weakens, you can apply for a disability pension or a years-of-service pension. The family of a deceased self-employed person can receive a survivors’ pension.
Your retirement age is determined based on your year of birth. If you wish to reduce your working hours when your retirement age approaches, you can retire on a partial old-age pension before your actual retirement age. You can retire on a permanent old-age pension flexibly after you have reached the lower limit for old-age pension.
The pension does not begin automatically, so be sure to apply for it. When your old-age pension begins, your YEL income – based on which your pension has accrued – will be taken into account until the end of the month preceding the start of your pension.
Handle your pension matters easily online
- check your pension accrual in the pension record
- find out your old-age retirement age
- view your pension estimate
- submit a pension application
What happens to my YEL insurance when I retire?
Your YEL insurance will be terminated automatically when you receive a positive pension decision on
- an old-age pension
- a disability pension
- a partial disability pension
- a years-of-service pension.
Your YEL insurance will not be terminated automatically when you receive a positive pension decision on
- a partial old-age pension.
Being an entrepreneur while on a pension
You can continue your entrepreneurial activities, start a new business or work as an employee even while on a pension. If you continue your entrepreneurial activities or restart them while on a pension, you may require YEL insurance.
Read more about self-employment while on a pension