Ilmarinen / Pension and rehabilitation / Pension alternatives / Old-age pension
You can retire on old-age pension at any point after you have reached your lower retirement age. The longer you work, the larger your pension will be.
When can I retire on old-age pension?
You can retire on old-age pension when
- You have reached your lower old-age pension age and
- Your employment relationship has ended.
Your retirement age depends on your birth year. In addition to having reached the retirement age, retiring on old-age pension requires the termination of the employment relationship. If you are self-employed, you can continue your entrepreneurial activities as before.
Retiring on old-age pension
Retiring on old-age pension is easy. Before retiring, you can estimate the amount of your future pension using the pension calculator and decide if it would be a good idea for you to retire later. You can also consider the possibility of retiring on a partial old-age pension.
When you know the date of our retirement, terminate your employment relationship and file a pension application. Pension does not begin automatically.
Beginning of old-age pension
Your old-age pension can begin at the earliest at the beginning of the following month after you have reached your lower old-age pension age and your employment relationship has ended. You can apply for old-age pension retroactively for a maximum of three months.
If we do not have all the necessary information, such as the latest earnings information or the end date of employment, we will issue a provisional pension decision, based on which the pension will be paid into your account. Once we have all the necessary information, you will receive a final pension decision. The amount of your pension may change in connection with the final decision, if, for example, your employer reports more earnings.
Pension is taxable income, so you must apply for a pension tax card from the tax authority. Order the tax card after receiving the provisional decision.
You were born on 6 April 1960, so your lower old-age pension age is 64 years 6 months. Your employment relationship has ended. You can retire on old-age pension at the earliest on 1 November 2024.
Amount of old age pension
The amount of old-age pension is the pension accrued by the beginning of the pension. Read more about what affects the amount of pension and what pension accrues on.
An increase for deferred retirement will be calculated on the accrued pension if you choose not to start withdrawing the old-age pension right at the lower retirement age. However, no increase for deferred retirement will accrue during the months when you are paid an unemployment benefit. The increase for deferred retirement is 0.4 per cent for each deferred month. If you receive a provisional pension decision, you will not be able to see the increase for deferred retirement in it. The increase will only be added to the final pension decision.
If you retire after your lower old-age pension age
A person was born in 1959, which means that his or her lower retirement age is 64 years and 3 months. The person continues working and retires on old-age pension at the age of 65. By the age of 65, he or she has accrued EUR 2,000 in old-age pension. This pension amount will be increased by the increase for deferred retirement. The increase percentage is 9 mths x 0.4% = 3.6%. The increase for deferred retirement amounts to EUR 2,000 x 3.6% = EUR 72. The pension amount at the age of 65 is EUR 2,072 per month. Finally, the pension amount will be reduced by the impact of the life expectancy coefficient.
From a disability pension to an old-age pension
Disability pension and years-of-service pension will be automatically converted into an old-age pension of the same size when you reach your lower old-age pension age. We do not make a separate decision on change. If you have worked alongside your pension, you must apply for the pension accrued for that work. If you work while on an old-age pension, you can earn as much as you like without your pay affecting your gross pension amount.
If you continue working as an entrepreneur during old-age pension, then the YEL insurance is voluntary.
When can I retire?
The earnings-related pension provides security for you in the event of illness and old age and for your family when you die. There are several options for retiring on an old-age pension.Read more about when you can retire
Payment and taxation of pensions
Pension is paid on the first banking day of each month. Pension is taxable income. You need to order a tax card for pension from the tax authority. Order a pension tax card from the tax authority Vero.fi.Read more about the payment and taxation of pensions
Working while on a pension
You can work after you have retired on old-age pension. You can continue working even after you have reached your upper old-age pension age, as long as you come to an agreement with your employer.Read more about working while on a pension
Termination of pension
A pension can end for a number of reasons, for example when pensioner dies or if the conditions for paying the pension are no longer met.Read more about the termination of pension
In the MyPension service, you can apply for pension, check your retirement age and make pension estimates.Take a look at the MyPension service