The age limits for old-age pension:
The employer's obligation to insure ends at the upper age limit.
According to the Employment Contracts Act, the employment contract ends without giving notice and without a notice period at the end of the month during which the employee reaches the upper retirement age, unless the employer and the employee agree to continue the employment relationship.
If the pension is deferred past the lower age limit, it will be increased with an increment for deferred retirement of 0.4% per each deferred month.
The amount of pension can be checked on Varma's eServices at any time using one's personal banking codes.
Retiring on an old-age pension requires that the work contract ends.
The prerequisite for granting an old-age pension is that the employee is no longer in the employment relationship from which he or she is retiring.
The employer reports the end date of the employment relationship to the Incomes Register. The final payroll must be reported during the month that the employee's pension begins, at the latest. Although the end date is voluntary information in the Incomes Register, it is essential for the granting of old-age pension. If earnings are reported more than once during the month when the pension begins, the end date of the employment relationship must be given each time.
The application for old-age pension should be submitted approx. 2 weeks before the start of the pension, and 6 months before if the applicant has lived or worked abroad.
The quickest way to apply is online using Finnish banking codes at varma.fi/en > eServices. Appendix U is needed if the applicant has worked abroad.
Working is not restricted while on old-age pension
How ever, if the employee continues working immediately after retiring, there must be a significant change in the conditions - e.g. working hours or salary - as the prerequisite for granting an old-age pension is that the employee no longer continues the employment contract from which he/she retires.
New pension accrues until the upper age limit and can be applied for when the employee reaches the upper pensionable age.