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Pension reform

Pension reform to take effect at the start of 2017

The purpose of the pension reform that will take effect at the start of 2017 is to lengthen careers. You can find more information about the pension reform on this page, as well as in the Private customer section of our website and on the pension reform website ( maintained by the Finnish Centre for Pensions.

You can also read about pension reform matters in the Newsroom section of our website.

Five facts about the pension reform

1. The retirement age will gradually rise

2. Pension accrual will be harmonised

3. The pension contribution is the same for all employees

4. There will be new forms of retirement

5. Pension will accrue from full wages

New limits for old-age pension

Year of birth Retirement age Upper age limit for insurance
1955 63 years + 3 months 68 years
1956 63 years + 6 months 68 years
1957 63 years + 9 months 68 years
1958 64 years 69 years
1959 64 years + 3 months 69 years
1960 64 years + 6 months 69 years
1961 64 years + 9 months 69 years
1962 - 1964 65 years 70 years
1965 > adapted to change in life expectancy + 5 years from lowest age

Retirement age

The lower age limit for old-age pension will be raised by three months for every birth year until the age limit is 65. The first age group whose pensionable age will rise is those born in 1955. They can retire on old-age pension at the age of 63 years, 3 months. Those born in 1962 are the first age group for whom the retirement age is 65 years.

The upper pensionable age limit is five years higher than the lower limit, i.e. if the lower age limit for old-age pension is 65, the upper limit is 70.

After 2025, the pensionable age is affected by the rise in life expectancy. The need to raise the pensionable age is assessed every five years. The first possible increase, which can be no more than two months, will be in 2030.

Pension accrual

Pension accrues throughout a person’s career at a rate of 1.5% on employment earnings from the age of 17 until the lower age limit for old-age pension. During the transition period that ends on 31 December 2025, those between the ages of 53 and 62 accrue pension at a rate of 1.7% per year.

If a person retires later than at the lower age limit for old-age pension, his or her pension will be increased as a result of deferring retirement. The increase for deferred retirement is 0.4% for each month of deferral.

Pension accrues on one’s full earnings, meaning the employee’s earnings-related pension contribution no longer reduces the earnings on which the pension is based.
The pension contribution rate is the same for all employees, regardless of age. The exception is those who receive a higher accrual during the transition period; for them, the pension contribution is 1.5 percentage units higher than it is for younger employees.

New types of pensions

Those working in physically or mentally demanding professions can retire at the age of 63 after having carried out at least 38 years of work (years-of-service pension). A condition for the pension is also impaired workability. The pension amount consists of disability pension excluding the component for projected pensionable service.

Part-time pension will be replaced by partial early old-age pension, the age limit for which is 61 years until the year 2025 and 62 years thereafter. The amount of pension will be either 25 or 50 per cent of the pension that has accrued by the start of retirement, adjusted by the life expectancy coefficient. The amount will also be reduced with a monthly reduction of 0.4% for every month of early retirement. Early old-age pension does not require working part-time.