What should I do if I think about starting my partial old-age pension at the turn of the year

The pension increases to be made at the turn of the year 2022/2023 have led many to think about the most suitable time for starting their partial old-age pension.

Information for those considering partial old-age pension about the effect of the index increment at the turn of the year

The amount of partial old-age pension is influenced by factors such as the index increment and the amount of the base pension, 25% or 50% of which is granted as partial old-age pension.

  • The base pension is taken into account until the end of the year preceding the start of the pension. If the pension starts on 1 December 2022, the base pension is calculated on the basis of pension earned by the end of 2021. If the pension starts on 1 January 2023, the base pension is calculated on the basis of pension earned by the end of 2022.

The amount of partial old-age pension that started on or before 2022 is increased by the earnings-related pension index at the beginning of January. The indices have been confirmed. The earning-related pension index grows by 6.8 per cent.

When calculating the amount of partial old-age pension starting on 1.1.2023, earned income is adjusted to the 2023 level with the wage coefficient. The indices have been confirmed. The wage coefficient grows by 3.8 per cent. 

When I am thinking about changing my partial old-age pension from 25% to 50%

In the change of the partial old-age pension percentage, the base pension is first adjusted with the wage coefficient to the level of the year when the pension starts and then a new 25% share is calculated. The amount of pension is influenced by early/late retirement and the life expectancy coefficient.

  • If the change applies at the latest as of 1 December 2022 the pension is increased by the earnings-related pension index at the beginning of January.
  • If the change applies as of 1 January 2023, the earlier pension percentage is increased by the earnings-related pension index. The new share is calculated with the aid of the wage coefficient to the 2023 level and these two pension elements are combined to 50% partial old-age pension.

Read more about partial old-age pension