Pension changes at the turn of the year

In this news article, you can find the summary of earnings-related pension changes that will take place at the turn of the year.

New age groups within the scope of different pension types

Old-age pension will become possible for those born in 1958 as they reach their minimum retirement age, 64 years. The minimum retirement age for a person born in 1959 is 64 years and 3 months.

Those born in 1961 will be eligible for partial old-age pension as they turn 61.

Years-of-service pension will be possible for those born in 1959 starting from the age of 63. You can apply for a preliminary decision on years-of-service pension three months before you plan to start your retirement.

Information about different pension types


Survivors’ pension cover will be expanded

The legislative amendment entering into force on 1 January 2022 will change the survivors’ pensions for both widowed persons and children. This will not affect surviving spouse’s pensions that have already been granted. Their payment will continue as before.

Children’s pension cover will improve. The maximum age for orphan’s pension will rise from 18 to 20 years. The maximum age will rise for those young people who turn 18 after the legislative amendment enters into force.

As of 1 February 2022, surviving spouse’s pension will also be possible after a common-law marriage if the spouses’ minor child is also a beneficiary. After a marriage, pensions for widowed persons born in and after 1975 will be granted for a fixed period. Pensions for widowed persons born before 1975 will be granted until further notice. The eligibility for surviving spouse’s pension is subject to terms and conditions related to the beginning and duration of the relationship, among other things.

Read more about survivors’ pension cover

Pensions will rise by 2.28 per cent as of the beginning of the year

Earnings-related pensions payable in 2022 will be increased by the earnings-related pension index by approximately 2.28 per cent when compared to 2021. The wage coefficient used in the calculation of earnings-related pension will increase by approximately 2.46 per cent.

The life expectancy coefficient has been confirmed for those born in 1960. A coefficient of 0.94659 will be used to adjust the pension amount to the rising life expectancy.

Letters to pension customers at the turn of the year

We will mail annual letters to our pension customers at the turn of the year. However, the letters can be read in our online service before this. In the letter, you will find next year’s pension amount and the pension payment dates. In addition, the letter will show the total amount of pensions paid and the amount of tax withheld. The letter will also provide residence report confirmation instructions for pension recipients living abroad.

Read more about the online services for pension recipients

Pension taxation

The Tax Administration delivers the tax rates for 2022 to Varma automatically. This means our pension recipients do not need to send their tax cards to us. Our rehabilitation customers must request a new tax card annually and the Tax Administration then sends the tax card to Varma.

Starting from February, we will withhold tax from pensions in accordance with the 2022 tax rate provided by the Tax Administration. As a result of this, the amount of pension paid into your account may change at the beginning of February. In our online service, you can check the amount of pension that will be paid into the account in February.

If you want to raise the tax rate provided by the Tax Administration, you can do this yourself when you log in to our online service. You can also inform our Pension Payment Services of the rate raise by phone. Inform us of the changes at the latest on 24 January 2022 to have them apply to the February pension.

Taxation for pension recipients living in Spain will change as of 1 January 2022

Starting from 1 January 2022, Finland has the right to collect taxes on nearly all pensions paid from Finland to Spain as the application of the transition period regulation of the tax treaty between Finland and Spain ends. Our pension recipients living in Spain should check the website to see how the tax treaty influences the taxation of pensions and, if necessary, request a new tax card for pension.

Read more about the taxation change at

Employee’s pension contributions will remain unchanged

In 2022, the employee’s pension contribution rate will be

  • 7.15% for those under 53
  • 8.65% for those aged 53–62
  • 7.15% starting from the age of 63.

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