Partial retirement

You can only apply for part-time pension until the end of 2016. After that partial old-age pension will take over from part-time pension.

 

Apply for part-time pension until the end of 2016

Partial old-age pension will take over from part-time pension. The new type of pension is more flexible because you can keep on working, start working part-time or not work at all, as you choose.

You can apply for part-time pension at the latest by 31 December 2016, and partial old-age pension as of December 2016.

Read more about partial old-age pension

If you are on a part-time pension, you can still keep receiving it. You can see below how the part-time pension affects your income, taxation and other aspects of your life.  

Part-time pension and the pay you receive from part-time work is income subject to tax. As a part-time pensioner you are required to have two tax cards, one for your pension  and another for your pay.



 

The TyEL and YEL insurance contribution percentages for part-time employees and entrepreneurs are the same for both full-time and part-time work. The contributions become lower, however, because the employee’s insurance contribution is calculated from the halved pay and the self-employed person’s from the halved YEL income. 

 

Part-time work accrues your old-age pension in the same rate as full-time work. Employees and entrepreneurs accrue pension in the same way.

Part-time pension affects your social security somewhat. 

If you fall ill you will receive daily allowance from Kela as specified by your health insurance. The daily allowance is calculated from your earnings from part-time work and you will receive it for a maximum of 300 days. If your illness continues after this, you need to apply for disability pension. Once you receive your pension, your part-time pension ends automatically. 

Part-time pension may weaken your unemployment security.


 

The amount of part-time pension is easy to calculate: As an employee your part-time pension is half of the difference between your established full-time earnings and part-time earnings. As a self-employed person your part-time pension is similar, equalling half of the difference between your full-time and part-time income from self-employment. Whether an employee or entrepreneur, you cannot receive more than 75 per cent of the earnings-related pension that you have accrued by the start of the part-time pension. 

Your pension will remain unchanged as long as the work you do remains unchanged. If your work changes, please contact us. Please also call us when you begin to receive another pension in addition to the part-time pension. Our customer service can be contacted at +358 10 284 2011.

 

You can remain on part-time pension for as long as you are working part-time. 

Your part-time pension will end if your part-time work ends. If you become unemployed, register as a job seeker with the employment and business office, i.e. TE Office. As a member of an unemployment fund you will receive earnings-related daily allowance. If you are not a member of a fund, apply for basic daily allowance or labour market subsidy from Kela.

If you are an employee your part-time pension will end when your earnings change so that they fall below the lower limit or exceed the upper limit for part-time pension. If you are a self-employed person, your part-time pension will end if you change your earned income, return to full-time work, quit your self-employment activities or begin a new employment relationship alongside your entrepreneurial activities. 

If your circumstances are only changing temporarily and no more than 6 months, the part-time pension will end temporarily only.

Part-time pension ends at the latest when you turn 68. It automatically converts into old-age pension. You can also retire on old-age pension earlier.  

Your pension will remain unchanged as long as the work you do remains unchanged. If your work changes, please contact us. Please also call us when you begin to receive another pension in addition to the part-time pension. Our customer service can be contacted at +358 10 284 2011.