What to do when I am reducing my working hours?

Pension accrues on earnings from employment, and reducing the amount you work during your career affects the amount of your future pension. However, for those considering retirement, combining part-time work with retirement may be a desirable option. Working brings additional income, and work and social relations at the workplace could be important, life-enriching experiences.

How does working less affect earning-related pension?

Pension accrues on your earnings from employment. If you reduce your working hours, it affects the amount of your future pension. Working less may, however, be a good option if you feel it would help you cope better in working life. The Amount of pension page provides detailed information on how your earned income affects the amount of your future pension.

Partial old-age pension is a way to reduce your working hours

If you would like to partially retire before you fully retire, partial old-age pension is a flexible option. You do not need a medical statement to apply for partial old-age pension, and when the pension is granted, there is no assessment of your work ability.

With partial old-age pension you are not required to reduce your working hours, but you can if you want to. If you are in an employment relationship and you want to change your working hours, you must agree on this with your employer. If you are self-employed, you can reduce the amount you work and adjust the level of your YEL income accordingly. A reduction for early retirement will be made to your pension if you apply for the pension to start before you reach your minimum retirement age.

Partial disability pension or the partial cash rehabilitation benefit secures your income if you have partial work ability

Partial disability pension and the partial cash rehabilitation benefit are options for remaining in working life while drawing a pension, even if your work ability is reduced.

Partial disability pension (partial pension) is half of the full disability pension. You can work while drawing the pension, and your earnings can be at most 60% of your previous earnings level. The Working during retirement page contains additional information on the opportunities that partial pension offers for combining work and retirement.

If you already received a positive preliminary decision on partial disability pension or the partial cash rehabilitation benefit and you are ready to begin drawing a pension, you can fill in the Notification of retiring on partial disability pension on the ‘Applications and notifications’ page.

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