Learn about the different types of pension.Read about the types of pension
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.
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.
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.
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.
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.
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!