Learn about the different types of pension.Read about the types of pension
Employees can choose to retire on old-age pension at any time between the ages of 63 and 68. If an employee’s work capacity has weakened due to an illness or injury, he or she can apply for disability pension. Following the pension reform carried out in 2017, the retirement age will rise gradually. The new age limits apply to those born in or after 1955.
Retiring on old-age pension requires the termination of the employment relationship. Agree with your employee on what date his or her employment shall end. It is a good idea to end the employment relationship at the end of the month, since pension always begins at the start of the month. This means your employee will receive the first pension payment after his or her last salary payment, and there will be no interruption in his or her income.
Old-age pension does not start automatically; instead, your retiring employee must apply for it. Encourage your employee to submit the application approximately one month before the employment relationship ends. The easiest way to do it is online.
Report the wages and salaries paid in 2018 to Ilmarinen. Report the employee’s final earnings only when you know the precise amount. At the same time, report the termination of the employment, if the employment relationship ends during 2018.
Report the wages and salaries paid in 2019 to the Incomes Register. Also report the end date of employment and the reason for termination.
Please also report the final salary or wages paid at the end of the employment relationship. Ilmarinen will receive all the necessary information for calculating the pension from the Incomes Register.
Your employee can also retire on pension other than old-age pension, for example partial old-age pension or survivors’ pension. Your employee can also apply for rehabilitation, cash rehabilitation benefit, disability pension or years-of-service pension.
Pensions and age limits changed as a result of the pension reform carried out in 2017. By 2025, the lower age limit for old-age pension will rise to 65, and there will also be some changes to the early retirement pensions.