The lowest retirement age for those born in 1954 or earlier is 63 years. If you continue working and stay insured your pension will acrue until the age of 68. The lower age limit will rise gradually by three months per year from 63 to 65 years. The lower age for those born in 1955 is 63 years 3 months, for those born in 1956 63 years 6 months, etc. The lowest retirement age of those born in 1962 is 65 years.
Submit your pension application approx. one month before you plan to retire. You do not have to close down your business in order to apply for old-age pension. The YEL insurance is voluntary for old-age pensioners.
Your old-age pension accrues on the basis of your confirmed YEL income. The amount of monthly pension for each year's entrepreneurship is calculated by multiplying the annual YEL income by the accrual percentage and dividing the result by 12. The accrual percentage is 1.5 for those under 53 years, and 1.7 for those aged 53 to 62 (during a transition period from 2017 to 2025). If you continue working and stay insured, without taking out your old-age pension at the lowest possible age, your pension will rise by 0.4 per cent for each month that you postpone your retirement (increment for deferred retirement).