The gap year for partial old age pension is over – applying is possible again

Applications for partial old age pension decreased sharply in 2025. At Elo, the number of applications fell by as much as 60 percent compared to the previous year. The drop was not due to reduced interest in the benefit, but to the rise in the age limit for partial old age pension. Now it is possible to apply for it again. 

Partial old age pension allows you to reduce your workload before full retirement or continue working as usual. You can receive the pension even if you are not employed. Your total income during the partial old age pension period consists of any earnings from possible work and the pension.

The year 2025 was exceptional because no new age cohorts became eligible for the partial old-age pension due to the rising age limit. For those born in 1963 or earlier, the age limit was 61 years. This meant that people born in December 1963 were the last to qualify at age 61 and could start the pension from 1 January 2025.

Now the wait is over. Those born in 1964 can apply for partial old age pension once they turn 62. For example, a person born in January 1964 can apply from 1 February 2026.

For those born in 1965 and later, the age limit is three years before their own earliest old age pension age. As a result, the age limit will continue to rise year by year.

How much partial old age pension can you receive?

The amount of partial old age pension is based on the earnings related pension you have accrued by the end of the previous year. You can choose to take either 25% or 50% of your accrued pension.

You do not need to start the pension as soon as you reach the age limit for partial old-age pension. If you begin taking the pension before your cohort’s earliest old-age pension age, the pension is permanently reduced by 0.4% for each month taken before the cohort’s lowest old age pension age. This reduction is permanent and affects the future full old age pension. If the pension is started after reaching the earliest old age pension age, the amount increases by 0.4% for each deferred month.

Example pension amounts for a person born in 1964

The example person was born in 1964 and has accrued EUR 2,200 per month in earnings related pension by the end of 2025. Their salary is EUR 4,400 per month.

If the person takes partial old age pension immediately at age 62, the pension is reduced by 14.4 percent (36 months × 0.4%). This is because a three year early retirement reduction is applied, as the earliest old age pension age for those born in 1964 is 65 years. The 50% pension is not directly half of EUR 2,200, but after the early retirement reduction it is approximately EUR 942 per month.

If the person continues working with a salary of EUR 4,400 during the partial pension period and retires at age 65, the old age pension will be approximately EUR 2,240 per month.

If the person reduces their work by half during the partial pension period with a salary of EUR 2,200, the old age pension at age 65 will be approximately EUR 2,141 per month.

If the person does not take partial old age pension at all and continues working with a salary of EUR 4,400, the old age pension would be approximately EUR 2,398 per month at age 65.

Note: The example calculations do not take into account the life expectancy coefficient, index adjustments or taxation.

How to apply for partial old age pension

1. Plan the start of the pension and agree on work arrangements

Partial old age pension can begin at the start of the month following the month in which you reach the age limit. If you plan to reduce your working hours, agree on the arrangements with your employer.

2. Check the estimated pension amount and taxation

In the online service for private customers, you can estimate both the partial old age pension and the later full old age pension. Taxation can be estimated on the Tax Administration’s website

3. Apply about two weeks before the pension starts

The easiest way is to apply online. Please note that partial old age pension cannot be terminated once it has started. However, the decision can be cancelled within three months, in which case any paid pension will be recovered.

4. Request a tax card from the Tax Administration

Pension is taxable income. If you work while receiving the pension, tax will be withheld both from your pension and from your salary, and you will need separate tax cards. Ask the Tax Administration to send the pension tax card to the pension provider.