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.
We have shortened the time it takes for applicants to receive a pension decision by issuing a provisional pension decision immediately after applying. In the best cases, the pension decision can be issued on the same day if the pension was applied for online.
We recommend applying for old-age pension online. Online, you can also see your up-to-date earnings-related pension record, as well as an estimate of your accrued pension before you apply. We recommend applying for pension approximately one month before you retire.
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.
It is the employer’s responsibility to submit an earnings payment report with information regarding the end of the employment relationship to the Incomes Register. The information will be forwarded from the Incomes Register to the earnings-related pension provider.
If you already know the amount of the employee’s final pay, enter the amount into the earnings payment report in which you notify the Incomes Register of the end of the employment relationship.
Final pay refers to the pay the employer pays to the employee when his/her employment relationship ends. An employee’s final pay can include, for example, overtime bonuses, holiday pay and holiday bonuses, remuneration for leave not taken in exchange for longer working hours, and other similar remunerations. An employee’s final pay also includes any work-related income earned from the terminated employment relationship retroactively, such as performance bonuses.
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.