When your employee retires

Learn about the different types of pension.

Read about the types of pension

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Retirement – what do you need to know?

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.

Old-age pension decisions issued faster than before

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.

Read more how to apply for old-age pension



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 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.

Instruct the employee to apply for old-age pension

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 final earnings and the end of employment to the Incomes Register

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.

Learn how to report retirement to the Incomes Register

Options other than old-age pension


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.

Pension reform 2017


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.

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.