Partial early old-age pension

The pension reform introduced partial early old-age pension to replace part-time pension, which will be discontinued. 

You can retire on partial early old-age pension if

  • you are 61 or older
  • you are born in 1964, the age limit for partial early old-age pension is 62. If you are younger than that, you have an opportunity to transition to partial early old-age pension at the earliest three years before your lowest age of old-age pension, which will be adjusted according to changes in life expectancy
  • you receive no other earnings-related pension

When you retire on partial early old-age pension, you will receive either 50% or 25% of the pension that has accrued to you. The choice is yours.

You do not have to stop working or even cut back on your hours. Stopping or cutting back will not prevent you from receiving the pension, however.

Amount of pension

Partial early old-age pension is calculated from the pension that has accrued to you up to the end of the preceding year. The decision on how much pension you wish to draw per month is up to you: either 50% or 25% of the pension that has accrued to you. If you decide to draw 25%, you can decide to draw the other 25% at a later date.

If you retire on partial early old-age pension before reaching the lowest age at which your age group is eligible for old-age pension, you pension will be reduced by 0.4% for every month of early retirement.

Correspondingly, your pension will be increased by 0.4% for every month of deferment if you retire on partial early old-age pension only after reaching the lowest age at which your age group is eligible for old-age pension.

Transition to old-age pension

You can transition from partial early old-age pension to full-time old-age pension if

  • you have reached the lowest retirement age for your age group, and
  • you stop working in your primary employment

When you have worked while on partial early old-age pension, you will also receive the pension that has accrued for this.

An application must always be filed to receive old-age pension. See the instructions for old-age pension applications as well as the general instructions for pension applications.

Are you subject to personal or occupational retirement age?

If you have personal retirement age

If you were born before 1960 and your personal retirement age is 63–65 years, your existing accrual predating 1995 will be reduced if you take partial early old-age pension before reaching your personal retirement age.

If you have occupational retirement age

You can retire on partial early old-age pension if you have chosen the lower occupational retirement age. The number of months of early retirement which reduce your pension are calculated on the basis of the lowest retirement age for the age group and not from your occupational retirement age. The accrual predating 1995 will also be reduced.

You are not eligible for partial early old-age pension if you have already reached your occupational retirement age, but not the lowest retirement age for your age group. Instead, you are entitled to old-age pension from which no early retirement reductions will be made.

 

How to apply for partial early old-age pension

You should file your application for partial early old-age pension 1–2 months before your retirement.

Please note that the earliest possible start date for partial early old-age pension is 1 February 2017.

Please see the general instructions for pension applications and what to do after receiving your pension decision. 

Send your pension application and enclosures to: Keva, FI-00087 KEVA