National pension and guarantee pension

The national pension ensures the provision of minimum security for those who have not accrued any earnings-related pension or whose earnings-related pension is small.

The guarantee pension is a minimum pension from which all other pensions paid to the pension recipient are deducted in full. This pension guarantees everyone a minimum pension that is higher than the national pension.

Provisions on the national and guarantee pensions are laid down by law.

• National Pensions Act 568/2007 (Finlex), in Finnish and Swedish
• Act on Guarantee Pensions 703/2010 (Finlex), in Finnish and Swedish

Who is entitled to a national pension?

Pensions under the national pension scheme are paid in the following way:

• old-age pension to persons born before 1965 at the earliest when they reach the age of 65 and to persons who were born in or after 1965 when they reach their personal retirement age in accordance with earnings-related pension legislation
• early old-age pension to persons born before 1962
• disability pension to persons who have reached the age of 18
• survivors’ pension to the surviving spouse and children.

The national pension decreases when the earnings-related pension and other pensions and compensations affecting it increase. The amount of the pension is also affected by how long the applicant has lived in Finland between the ages of 16 and 65.

The amount of the national pension also depends on the applicant’s family relationships. The pension is slightly higher for a person living alone than for a person who is married or cohabiting. National pension recipients may also be entitled to a child increase.

It is possible to postpone applying for an old-age pension, in which case the pension will increase.

Persons born in 1961 or before can also receive an early old-age pension. Each month that is brought forward will permanently reduce the pension.

Who is entitled to a guarantee pension?

A person living in Finland is entitled to a guarantee pension if they receive:

• an old-age pension or early old-age pension 
• a full disability pension 
• a statutory accident compensation granted based on full incapacity for work
• a benefit from the scheme for farmers’ early retirement aid.

As a rule, to qualify for a guarantee pension, the applicant must have lived in Finland for at least three years after turning 16.

Other pension income affects the amount of the guarantee pension

The pension income received by the recipient from Finland and from abroad reduces the amount of the guarantee pension. Other earned income, capital income and assets do not affect the amount of the guarantee pension. If you receive a disability pension, your earnings may, however, affect the payment of the guarantee pension. 

If the start of the national pension is brought forward or part of the earnings-related pension is taken out early, the amount of the pension is taken into account in the guarantee pension without the reduction for early retirement.