Working while on a pension

When you work while on an old-age pension, you can earn as much as you like without your pay affecting your gross pension amount.

If you want to continue to work for your current employer and start drawing pension at the same time, follow these steps:

1. Agree with your employer on the termination of your current employment relationship.
2. Apply to us for an old-age pension.
3. Make a new employment contract with your employer. At the same time, agree on how your work will change. It must change materially in order for you to be able to work and draw a pension at the same time. You can, for example, switch from full-time to part-time work.

You may be considering continuing at work longer than you originally intended and retiring on old-age pension later. If you do that, your pension amount will be increased by a permanent increase for deferred retirement, which is 0.4% per month.

Read more about how you accrue a new pension >

When you work while on a partial old-age pension, you can earn as much as you like without your pay affecting your gross pension amount. On a partial old-age pension, you can continue to work as before or change the amount of your work input.Agree on the changes in your work with your employer.

Read more about the partial old-age pension >

Earnings limit

If you draw a disability pension or years-of-service pension, you can work up to a specific limit. How much you can earn depends on your personal earnings limit. The earnings limit refers to the maximum gross pay that you can earn each month. The earnings limit depends on your previous income and the type of pension you draw.

Your original earnings limit is stated in the pension decision you received. Your earnings limit changes at each turn of the year. To find out your latest earnings limit, check the MyPension service or contact our customer service.

Your earnings limit while on a disability pension

Your earnings limit varies according to whether you draw a disability pension or a partial disability pension. Your earnings limit

• while on a disability pension is 40 per cent of your average income level before your disability began.
• while on a partial disability pension is 60 per cent of your average income level before your disability began.

However, you can earn at least EUR 922.42 per month (year 2023). As a self-employed person, your YEL income can be at least EUR 11,069.04 in 2023.

Your earnings limit while on a years-of-service pension

While on a years-of-service pension, your earnings limit is EUR 922.42 per  month (year 2023). As a self-employed person, your YEL income can be at most EUR 10,416.51 in 2022.

If your earnings exceed the earnings limit

Make sure that your pay does not exceed your earnings limit. However, if your pay exceeds the earnings limit, we may have to suspend the payment of your pension. Unduly paid pension may have to be recovered. A pension can be suspended for no more than two years. If a disability pension has been suspended for more than two years, the pension will be terminated.

If your earnings are going to exceed the limit, or if you have any further questions about the earnings limit, contact our customer service.

If you draw a surviving spouse’s pension, you can work freely without your pay affecting your gross pension.

If you retire on an old-age pension as a self-employed person, your mandatory YEL insurance ends automatically, whether you continue your work as an entrepreneur or not. If you wish to accrue more old-age pension while on an old-age pension, you can take out voluntary YEL insurance. Apply to us for the pension accrued to you after you have reached your upper age for old-age pension.

As a self-employed person, you can retire on a partial old-age pension and pursue your entrepreneurial activities without limitation. It is important that your YEL income corresponds to the value of your work input, just as before your retirement. So keep your YEL insurance in force if you continue your entrepreneurial activities.

If you reduce your working hours and retire on a partial old-age pension, reduce your YEL income so that it matches your new reduced work input. If you end your entrepreneurship altogether, terminate your YEL insurance.

Read more about the YEL income and its impact on your pension an other social benefits >

You may need YEL insurance if you draw a disability pension. YEL insurance is mandatory alongside a disability pension if your income exceeds the minimum YEL income limit. However, your YEL income must not exceed your earnings limit.