Earnings-related pension

People earn earnings-related pension based on their earnings from work or self-employment.

An earnings-related pension is paid to a person who has accrued pension according to their earnings either in an employment relationship or as a self-employed person. The amount of the pension is determined according to the person’s earnings. There is no upper limit in euros for the pension. 

The earnings-related pension scheme is based on a number of different acts. The pension acts can be found here:

• Legislation concerning income security

How is old-age pension accrued?

In the earnings-related pension scheme, employees accrue old-age pension from work performed from the age of 17 and self-employed persons from work performed from the age of 18.

Pensions are calculated based on the annual earnings, for self-employed persons on the annual confirmed earned income.

• Amount of earnings-related pension (Työeläke.fi)

You can check your pension record to see how your pension builds up.

• Pension record (Työeläke.fi)

Retirement age is determined by the year of birth

You can retire on an old-age pension based on the earnings-related pension scheme once you have reached the minimum age for old-age pension, determined by your year of birth.

You can check your retirement age and find more information on the retirement age here:

• Old-age pension – Your retirement age is based on your year of birth (Työeläke.fi)

You do not need to retire on an old-age pension after you have reached the minimum retirement age. If you choose not to take your old-age pension when you reach the minimum retirement age, it is possible to get a deferment increase, which is 0.4 per cent for each postponed month.

Partial early old-age pension

The partial early old-age pension allows you to take out part of your accrued earnings-related pension before retiring on a full old-age pension. You can choose to take either 25 or 50 per cent of your pension as partial early old-age pension.

If a partial early-age pension is taken before the personal minimum retirement age, the amount of the pension will be permanently reduced by 0.4 per cent for each month it has been brought forward. This reduction for early retirement is permanent and affects the amount of the pension also after retirement on a full old-age pension.

• Flexible partial old-age pension (Työeläke.fi)

Years-of-service pension

The years-of-service pension enables those employees and self-employed persons who have had a long career in work that requires great mental or physical effort to retire slightly before the actual retirement age for old-age pension. To qualify for this pension, you must have done work that requires great mental or physical effort for at least 38 years and have reduced capacity for work.

• Years-of-service pension after long work history that requires great effort (Työeläke.fi)

Self-employed persons and farmers insure themselves

Self-employed persons are obligated to insure themselves in accordance with the Self-employed Person’s Pensions Act (YEL). Pension benefits, daily allowance benefits and insurance contributions are all determined according to the earned income. 

The Finnish Centre for Pensions supervises the earnings-related pension insurances of self-employed persons.

• Self-employed (Finnish Centre for Pensions)

Farmers, forest owners, reindeer herders and commercial fishers and their family members who work with them insure themselves according to the Farmer’s Pensions Act (MYEL).

The MYEL insurance is based on the MYEL earned income.  Pension benefits, daily allowance benefits and insurance contributions are all determined based on the earned income.

• The Farmers' Social Insurance Institution Mela