New Pension Benefits and the Pension Reform
The website New pension benefits and the pension reform shows how the 2017 pension reform affects the statistics . The pension reform introduced two new pension benefits: the partial old-age pension and the years-of-service pension. The reform also raises the retirement age gradually.
Raising the retirement age for old-age pensions has delayed retirement
Raising the minimum retirement age seems to be working as intended. Retirement has been delayed and, as a result, more people in each age group are reaching the age of 63 without retiring.
Those born in 1954 were the last age group with a retirement age of 63 years. Starting with those born in 1955, the retirement age has been raised and will continue to rise in three-month increments by age group so that the retirement age for those born in 1962 will be 65.
Before the increase in the retirement age, the peak retirement age was 63. For subsequent age groups, the peak has shifted in line with the increase in the retirement age. For those born in 1958, the peak was exactly 64 years, and for those born in 1959, it was 64 years and 3 months. Nearly 40 per cent of insured persons retire immediately on reaching retirement age.
The increase in the retirement age has led to an increase in disability pensions for people over 60. The number of unemployed people close to retirement age has remained the same. The increase in the retirement age does not seem to have changed this situation.
(Updated on 3 December 2024)
Additional information:
Nearly 60,000 persons received a partial old-age pension at the end of 2023
In 2023, the total number of persons with a partial old-age pension continued to rise and was 57,000 at the end of the year. The volume continued to rise even though the number of new partial old-age pensioners in 2023 was clearly lower than in 2022, when a record-high number of claims for the partial old-age pension was submitted.
Nevertheless, the number of new partial old-age pensioners grew considerably in 2023 compared to the previously established level. In 2023, a total of 21,000 new partial old-age pensions were paid out. The amount was 1.5 times higher compared to before 2022.
The main reason for the steep rise in pension claims at the end of 2022 was the exceptional index development which encouraged people to retire towards the end of the year. The phenomenon was repeated in 2023 but was clearly less pronounced than in 2022. The benefit from taking the pension early due to the favourable pension index was minor.
In 2023, 15 per cent of those born in 1962 selected to take out a partial old-age pension. They received an average monthly pension of 750 euros. Since most partial pensions of the age cohort started right after turning 61 years, the pensions were taken out 46 months early, on average. For this age cohort, it meant an average reduction of 170 euros per month when the pension was taken out at 50 per cent.
(Updated on 6 June 2024)
Years-of-service pension paid to 147 persons at end of 2023
The years-of-service pension was introduced in connection with the 2017 pension reform. The pension can be granted to individuals who were born in 1955 or after and who have done work that requires great mental or physical effort for at least 38 years. The first years-of-service pensions were paid out in the spring of 2018. The years-of-service pension can be paid out between age 63 and the retirement age for an old-age pension, so the partial old-age pensions that began last year have been in payment for a maximum of 1.5 years.
During its six-year history, a total of 1,500 persons have claimed the years-of-service pension. Every third of them have retired with the pension. Many of the claimants have been granted a disability or an old-age pension directly. Some of the claims have been rejected. For the most part, the rejections have been linked to the prerequisite of work that requires great mental or physical effort.
Additional information:
Years-of-service pension 2018–2023
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Claimants | 101 | 111 | 208 | 266 | 352 | 413 |
| Starting pensions | 21 | 27 | 72 | 84 | 119 | 134 |
| – Average pension €/month | 1,870 | 2,081 | 2,173 | 2,074 | 2,115 | 2,410 |
| Pensioners at 31 Dec. | 5 | 15 | 62 | 75 | 104 | 147 |
(Updated on 6 June 2024)
Additional information:
- Press release 6 June 2024: Partial old-age pension still going strong in Finland
- Years-of-service pension
Statistical services provides further information: