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Partial early old-age pension

You can draw part of your old-age pension already before reaching your lower old-age pension age. At the same time, you can work as much as you like or stop working altogether. Choose the option that best suits you within this flexible pension type and retire partially, if you wish. The partial early old-age pension is also referred to as the partial old-age pension.

When can I retire on partial old-age pension?

You can retire on partial old-age pension when

  • you are 61 years or over and
  • you do not receive any other earnings-related pension of your own

  • you do not have disability pension which is dormant because you are working

If you were born in 1964, you can retire on partial old-age pension at the age of 62. The pension age for those born 1965 and after has not been confirmed yet.

Partial old-age pension may be a good solution for you whether you are an employee, self-employed or unemployed

While on a partial old-age pension, you can work as much as you like without earnings limits. You accrue pension on your work. If you wish to change the size of your work input, you must agree on it with your employer. You can retire on partial old-age pension also when you are unemployed or self-employed. If you are self-employed, make sure that your YEL income corresponds to the value of your work input also during the partial old-age pension.

Impact on the tax rate

The partial old-age pension is taxed as pension income. If your income from work reduces when you retire on a partial old-age pension, usually your tax rate will also be reduced. But if your previous income level remains the same and you take a partial old-age pension, the tax rate will increase. You can use the tax percentage calculator at vero.fi to check how the change in pension income and salary income affects the tax rate.

Amount of partial old-age pension

You decide how large a pension you wish to withdraw. There are two options: 50 per cent or 25 per cent. This 50 or 25 per cent is calculated from the pension that you have accrued by the end of the year preceding your retirement.
If you start by withdrawing 25 per cent of your pension, you can raise it to 50 per cent later. However, you cannot start by withdrawing 50 per cent of your pension and then reduce it to 25 per cent.

If you retire on partial old-age pension before you reach your lower old-age pension age, the reduction for early retirement will reduce your partial old-age pension by 0.4% per month for every month preceding the lower old-age pension age. If you retire on partial old-age pension after reaching your lower old-age pension age and you have not received unemployment allowance for that period, your partial old-age pension will be increased by the increase for deferred retirement.

The partial old-age pension might reduce your future pension

Retiring on a partial old-age pension might reduce your future pension permanently. If you retire on partial old-age pension before you have reached your lower retirement age, the reduction will be the same as the reduction for early retirement applied to the partial old-age pension. If you retire on partial old-age pension after your lower retirement age, the reduction will not be done.

In practice, the older you are when retiring on partial old-age pension and the more your work while on the partial old-age pension, the less your pension will be reduced.

If you are considering retiring on a partial old-age pension, try our MyPension service’s calculator. You can also use the calculator to estimate the amount of your future full old-age pension. It also allows you to calculate how much the partial old-age pension will reduce your future full old-age pension.

Please note that old-age pension does not start automatically after partial old-age pension. It must be applied for separately.

Cancellation of partial old-age pension

If you have second thoughts, you can cancel your pension even after having received a pension decision from us. In that case, cancel your pension in writing within three months of the decision. You can do this using the MyPension service’s 'Lähetä viesti' (Send a message) feature or by contacting our customer service. If you cancel your pension, you will have to pay back the pension that has already been paid to you.

You can apply for partial old-age pension in the MyPension service.

My PensionService

  1. Payment and taxation of pensions

    Pension is paid on the first banking day of each month. Pension is taxable income. You need to order a tax card for pension from the tax authority. Order a pension tax card from the tax authority Vero.fi.

    Read more about the payment and taxation of pensions

  2. Working while on a pension

    Partial old-age pension allows you to work and draw pension at the same time; however, you can also choose not to work while drawing the pension.

    Read more about working while on a pension

  3. MyPension service

    In the MyPension service, you can apply for pension, check your retirement age and make pension estimates. The service is currently available only in Finnish and Swedish.

    Take a look at the MyPension service