Pension changes at the turn of the year

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

Pensions will rise by 5.7 per cent as of the beginning of the year

Earnings-related pensions payable in 2024 will be increased by the earnings-related pension index by approximately 5.7 per cent when compared to 2023. The earnings-related pension index is used to adjust any earnings-related pensions to be paid that have started no later than on 1 December 2023. The earnings-related pension types to be increased are: old-age pension, partial old-age pension, disability pension, partial disability pension, cash rehabilitation benefit and partial cash rehabilitation benefit, rehabilitation allowance, years-of-service pension and survivors’ pensions (surviving spouse’s pension and orphan’s pension).

No separate index adjustment application is required, as we will automatically increase pensions in January.

Read our news release for more information on the index changes.

Pension for January will be paid on 2 January. Check the payment dates of all monthly pensions next year in the payment date calendar.

Pension taxation

The Tax Administration delivers the tax rates for 2024 to Varma automatically. This means that our pension recipients do not need to send their tax cards to us. Pension that started on 1 November 2023 or on 1 December 2023 are exceptions: in these situations, the pension recipients themselves must request tax cards for both 2023 and 2024. The Tax Administration will send the requested tax cards to Varma. 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 2024 tax rate provided by the Tax Administration. Because 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.

The 2024 tax rates can be seen in Varma Online Service after 12 January 2024. If necessary, you can raise your tax rate in our online service on the “Bank account number and tax rate” page. The tax rate cannot be changed in the period from 22 December 2023 to 12 January 2024. Instead, you can inform us of the tax rate raise by sending a message in our online service on the “Messages and documents” page (select “Payment of the pension and taxation” as the subject). You can also inform our pension payment department of the rate raise by phone, tel. +358 10 192 100. Please note that you can wait for our online service’s tax rate service to open on 12 January: all tax rate changes reported at the latest on 25 January will be applied to the February pension. 

Letters to pension customers at the turn of the year

The letters to our pension customers will be available in our online service before Christmas. Pension recipients will also receive the turn-of-the-year letter by post in December. 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

New age groups within the scope of different pension types

Old-age pension will become possible for those born in 1960 as they reach their minimum retirement age, 64 years 6 months. For a person born in January 1960, old-age pension may thus start on 1 August 2024.

Those born in 1963 will be eligible for partial old-age pension as they turn 61.
Use the pension calculator to check your own retirement age for old-age pension and partial old-age pension.

Years-of-service pension will be possible for those born in 1961 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

Working while on old-age pension – apply for the payment of pension at the age of 68

At the age of 68 (highest retirement age), you can apply for pension accrued from working while on old-age pension. For those born in or after 1958, the age limit is 69 years.

Wage coefficient

The wage coefficient used in the calculation of earnings-related pension will increase the wages and confirmed income for your working career by approximately 5.1 per cent in 2024. The wage coefficient is used when you retire.

Life expectancy coefficient

The life expectancy coefficient has been confirmed for those born in 1962.
The coefficient will reduce upcoming pensions by 5.3 per cent. A coefficient of 0.94692 will be used to adjust the pension amount to the rising life expectancy. The life expectancy coefficient will reduce upcoming pensions less than last year.

Read our news release (in Finnish) for more information on the life expectancy coefficient.

Employee’s pension contribution

Employee’s pension contribution will remain unchanged in 2024, with the amount being

  • 7.15 per cent for employees under 53 years of age
  • 8.65 per cent for employees aged 53–62
  • 7.15 per cent for employees aged 63 or older.
Indices for earnings-related pension cover for 2024 have been confirmed: Earnings-related pension increases by 5.7 per cent
pension security 27.10.2023

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