Pension reform took place in 2017 which gradually rises retirement age, standardizes pension accrual and introduces new pension options.
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| Age | Employee contribution percent |
|---|---|
| 17–52 years | 6,15 % |
| 53–62 years | 7,65 % |
| 63–67 years | 6,15 % |
Contribution as an entrepreneur
...
| YEL payment percentages | |
|---|---|
| Age | YEL payment |
| 18–52 years | 24,10 % |
| 53–62 years | 25,60 % |
63–67 years | 24,10 % |
| Starting entrepreneur (22 % reduction) | |
| 18–52 years | 18,80 % |
| 53–62 years | 19,97 % |
| 63–67 years | 18,80 % |
Pension accrual
As of the year 2017 Pension accrual is standardized and pension will accrue from the whole salary. Pension will accrue from the age of 17 (18 for entrepreneurs) so that everyone will have an accrual rate of 1,5 %.
| Info |
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| The years 2017-2025 are a transition period and during that period people that are 53-62 years old, will have an accrual rate of 1,7 %. Pension accrual doesn't affect salary payment. |
| Age | Pension accrual rate |
|---|---|
| 17–52 years | 1,5 % |
| 53–62 years | 1,7 % |
| 63–67 years | 1,5 % |
Retirement age
The general retirement age will rise gradually from the current 63 years by three months per year, until it reaches 65 years. The retirement age will concern people that are born in the year 1955 or after and who will turn 62 after the year 2017. Retirement age is increased by three months per year and will have an effect at first to those who are born in the year 1955. Their retirement age will be 63 years and three months. The retirement age will increase after that by three months per year so people born in the year 1956 will have retirement age of 63 years and six months. Retirement age will be rised until the general retirement age will reach 65 years. If an employee has been retired before the year 2017, the reform will not affect him or her.
| Info |
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| The retirement age rise affects only upcoming pensions, so pensions which are already earned or which are already being paid will not change. The rise of retirement age doesn't affect salary payment. |
New pension options
Partial old-age pension
Partial old-age pension replaces the earlier part-time pension. You can draw parts of your old-age pension before reaching your general retirement age, regardless of whether you continue, reduce or stop working. In 2017, you can draw parts of your old-age pension as of age 61. You can draw a quarter (25%) or half (50%) of your accrued pension. If you draw a part of your pension before your general retirement age, that part will be reduced by 0.4 per cent for each month left until your general retirement age.
Years-of-service pension
If you have had a strenuous and long working life, you may be able to retire already at age 63. If your working capacity has diminished and your work has been strenuous and wearing for 38 years, you can apply for a years-of-service pension.