Amount of earnings-related pension

Earnings-related pension accrues from work: for employees based on annual earnings and for entrepreneurs based on YEL income. The longer you work, the higher your pension will be. In addition, working beyond the lowest retirement age is rewarded with a deferment increase.

Pension also accrues from work done alongside a pension, work abroad, and various unpaid periods, such as during sickness allowance. The life expectancy coefficient reduces the amount of pensions. The amount of disability pension can also be affected by the share of future pension.

Earnings-related pension accrues regardless of age at 1.5% of annual earnings or YEL income.
For employees, accrual starts at age 17. For entrepreneurs, accrual starts at age 18 based on YEL income, which also considers any flexible contributions.

The final age for accrual depends on the year of birth:

• 68 years for those born in 1957 or earlier
• 69 years for those born in 1958–1961
• 70 years for those born in 1962 or later

 Pension also accrues from work during retirement

Work during retirement accrues pension at 1.5% of annual earnings or YEL income. Learn more about working during retirement.

Working beyond the lowest retirement age is rewarded

If you wish, you can continue working beyond the lowest retirement age and increase your old-age pension. In that case, you will receive a deferment increase on your accrued pension, which permanently raises your pension by 0.4% for each month the start of your pension is postponed from the lowest retirement age. For example, if you delay your pension by one year, you will receive a permanent increase of 4.8% on your accrued pension. In addition, pension accrues at 1.5% of annual earnings and YEL income.

There is no right to a deferment increase for periods when you receive unemployment benefits. The deferment increase also does not accrue if you already receive a disability or old-age pension and work during retirement.

Accrual of pension during unpaid periods

Pension also accrues during unpaid periods, such as childcare leave, unemployment, study, or illness. The accrual rate is 1.5% per year based on the income underlying the daily allowance.

The following percentages of income used as the basis for daily allowance are considered pensionable:

• unemployment: 75%
• illness: 62%
• parental allowance benefits: 121%
• compensation for loss of earnings from accident and traffic insurance: 65%.

For childcare leave for a child under 3 years and study periods, the pensionable income is €876/month (in 2025). Pension accrual during unemployment ends when the person reaches the lowest retirement age for their age group. Other benefits can accrue pension up to age 68, provided the person has not yet retired.

No pension accrues from the basic unemployment allowance or labour market support paid by Kela under the Unemployment Security Act. In addition to unpaid benefits, sufficient work income must exist in the employment history for pension accrual during unpaid periods. If an old-age, disability, or unemployment pension is already being paid, no pension accrues from unpaid periods.

Pension from work abroad

When working abroad, you are generally covered by the social security system of the country of employment. Social insurance contributions are paid to that country, and benefits and pensions are determined by its laws. This principle applies regardless of the domicile or nationality of the employer, employee, or entrepreneur.
If temporarily posted to an EU or EEA country, Switzerland, or a country with a social security agreement, pension accrues in Finland. An A1 certificate from the Finnish Centre for Pensions must be taken along.

If posted to a non-agreement country, pension also accrues in Finland, but contributions may also need to be paid to the country of employment. When employed by a foreign employer, pension usually accrues under the rules of the country of work.

Impact of life expectancy coefficient on pension

People live longer than before, so pensions are paid for a longer time on average. The life expectancy coefficient adjusts the monthly pension amount to reflect increased life expectancy. As average life expectancy rises, the coefficient confirmed by the Ministry of Social Affairs and Health reduces monthly amounts of old-age and disability pensions. For example, for those born in 1963, the coefficient is 0.94759.

Working longer can increase your pension, but the coefficient cannot be removed. It applies even after additional years of work.

Life expectancy coefficient in old-age pensions

You can retire when you reach your lowest retirement age. The pension granted uses the coefficient for your year of birth. Its effect can be offset by working longer.
Life expectancy coefficient in disability pensions

Not everyone can extend their working life for health reasons. Therefore, the coefficient applies only to the earned part of the disability pension. It is based on the year disability begins, making it milder than if calculated by birth year. The so-called projected part of the pension is not subject to the coefficient.

Total pension amount

Earnings-related pension, national pension, and guarantee pension form the statutory pension system. Earnings-related pension is the foundation. If it is small, Kela may pay a national pension. You can receive a national pension if your earnings-related pension, depending on family circumstances, does not exceed €1,400–€1,600 per month. National pension is not paid as partial early old-age pension, partial disability pension, or career pension. The guarantee pension ensures a minimum pension.

You can apply for national and guarantee pensions together with your earnings-related pension. Kela issues the decision. If you apply only for Kela’s pension, apply directly to Kela. Learn more about Kela pensions and other benefits for retirees.

In addition to the statutory system, there are voluntary supplementary pensions to complement pension security. These may be arranged by the employer or taken out individually.

Amount of earnings-related pension in different pension options

Earnings-related pension accrues in the same way, but different pensions are calculated slightly differently.

Amount of old-age pension

As old-age pension, you receive the pension accrued up to the start of retirement, reduced by the effect of the life expectancy coefficient.

By continuing to work longer, you can increase your pension. Working beyond the lowest old-age retirement age is rewarded with a deferment increase of 0.4% for each month the start of the pension is postponed from the lowest retirement age. In addition, you accrue 1.5% pension per year of work.

Amount of disability and partial disability pension, rehabilitation allowance and partial rehabilitation allowance

When calculating disability pension, the pension accrued up to the end of the year before illness is considered. Your pension also includes the so-called projected period, i.e., the time from the start of the year of illness until the lowest retirement age, provided you have earnings insured under earnings-related pension laws of at least €21,024.09 during the last 10 calendar years before illness (in 2025).

Projected time accrues pension at 1.5% per year from the year of illness until old-age retirement age. Pension accrues based on the average of earnings and self-employed YEL income during the five calendar years preceding illness. Earnings for the year of illness are not considered (as they are already included in the projected time calculation).

For young people who become disabled, the pension is increased by a lump-sum increase five years after the pension begins. The amount depends on the recipient’s age.

The amount of partial disability pension and partial rehabilitation allowance is half of the full disability pension.

In addition to full disability pension and rehabilitation allowance, you may receive a national pension if your earnings-related pension, depending on family circumstances, does not exceed about €1,400–€1,600 per month. National pension cannot be paid alongside partial disability pension or partial rehabilitation allowance.

Amount of survivors’ pension

The survivors’ pension is based on the pension the deceased received or would have received as a disability pension. The amount depends on the number of beneficiaries. Widow’s and child pensions together can be at most equal to the deceased’s pension. The distribution changes as the number of beneficiaries changes, e.g., when a child turns 18.

Widow’s pension

When calculating the widow’s pension, the widow’s own earnings-related pension is considered if the widow is the sole beneficiary. This is called a pension reduction. If the widow does not yet receive their own pension, it is considered as a calculated disability pension.

The reduction is applied immediately when the survivors’ pension begins if the widow already receives their own pension. If not yet retired, the reduction is applied six months later. However, the reduction is only applied after the youngest child turns 18.

If the widow’s own pension is less than the statutory threshold of €836.50 per month, no reduction is made. In that case, the widow’s pension is half of the deceased’s pension. If the widow’s own pension exceeds €836.50 per month, half of the excess amount reduces the widow’s pension.

The reduction can also be based on the widow’s actual income if it is significantly lower than the calculated pension. This must be applied for separately. The reduction remains in effect until the widow’s circumstances change.

Amount of career pension

The amount of career pension is the pension accrued up to retirement. Unlike disability pension, career pension does not include projected time.
You can check your accrued earnings-related pension on your pension record.