When your employee retires

Learn about the different types of pension.

Read about the types of pension

Customer service | +358 10 195 000

Retirement – what do you need to know?

Employees can retire on old-age pension at any time between the ages of 63 and 68. If the employee’s work capacity has weakened due to an illness or injury, he or she can apply for disability pension. Following the 2017 pension reform, the retirement age is gradually rising. The new age limits apply to those born in or after 1955.

When your employee retires – follow these steps:

End the employment relationship

Retiring on old-age pension requires the termination of the employment relationship. Agree with your employee on the date when his/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/her last salary payment, and there will be no interruption in his/her income.


Instruct the employee to apply for old-age pension

Remind your employee that old-age pension does not begin automatically – it must be applied for. Encourage your employee to submit the application approximately one month before the employment relationship ends. The easiest way to fill in and submit a pension application is online.

Report the final earnings and the end of employment

Once we have received your employee’s pension application, we request that you report the employee’s final earnings to us. Please report the employee’s final earnings only when you know the accurate amount. At the same time, report the termination of the employment. These notifications can be made easily online. If you require user IDs for the online service, please call our customer service at +358 10 195 000.

Options other than old-age pension


Your employee can retire on another type of earnings-related pension besides old-age pension. Other pension options that can be applied for are partial old-age pension or survivors’ pension, as well as vocational rehabilitation, the cash rehabilitation benefit, disability pension or the years-of-service pension. Be sure to offer your employee support in these cases, too.

Pension reform 2017


The pension reform has brought changes to pensions and age limits. The new pension age limits take effect gradually. The lower age limit for old-age pension will rise to 65 by the year 2027. Changes are also in store for early retirement pensions. Read more about the pension reform!

Types of pensions and working while drawing pension

Old-age pension

You can retire on old-age pension once you have reached your lower age limit for retirement – or at a later date. The older you are when you retire, the bigger your pension will be. Employees themselves are responsible for submitting their old-age pension application to Ilmarinen.

Partial old-age pension

On partial old-age pension, you decide how much you want to work. You can retire on partial old-age pension at the age of 61. Partial old-age pension became on option as of 1 February 2017.

Disability pension or the cash rehabilitation benefit

If your work capacity has weakened, read more about disability pension and the cash rehabilitation benefit.

Survivors’ pension for surviving spouses and children

Survivors’ pension for surviving spouses and children helps when a spouse or parent passes away. It can be granted to the surviving spouse and children of an employee. If you are widowed, apply for survivors’ pension easily by filling in an online application.

Years-of-service pension

Find out more about the years-of-service pension if you have had a strenuous and wearing career lasting at least 38 years and an illness that has affected your work capacity. You can switch to the years-of-service pension as of 1 February 2018.

Working while drawing pension

It is possible to continue working while collecting old-age pension. The TyEL obligation to insure also applies to old-age pensioners under the age of 68 who are in an employment relationship.