In future, pension will accrue for all age groups at 1.5 per cent of annual income
The increased pension accrual of 1.7 per cent for 53-62-year-olds in force since 2017 and the corresponding higher pension insurance contribution (8.65 per cent) will end at the end of 2025.
From the beginning of 2026, pension will accrue for all age groups at 1.5 per cent of annual income. Pension accrues from the age of 17 up to the highest retirement age. The highest retirement age is determined by the year of birth and is 68-70 years, depending on the age.
Employee’s pension contribution 7.3 per cent of salary
In 2026, the employee’s pension insurance contribution to be deducted from the salary each month will be the same for all age groups, at 7.3 per cent. The minimum age for TyEL insurance is 17 years, and the upper age limit depends on the employee’s year of birth:
- for those born in 1958–1961, 69 years
- for those born in 1962 or later, 70 years.
Those born in 1957 will reach the upper age limit for old-age pension of 68 years in 2025. For this age group, pension contributions are no longer collected after the turn of the year and pension is not accrued.
The wage coefficient increases the amount of accrued pension
The wage coefficient used in the calculation of earnings-related pension will increase the wages and confirmed income for your working career by approximately 2.3 per cent in 2026. The wage coefficient is used in calculating the pension and ensures that the accrued pension does not lose its purchasing power over the years.
You can see the amount of your accrued pension on your earnings-related pension record in Varma Online Service. At the start of January, you will see the amount of your accrued pension increased by the 2026 wage coefficient.
Life expectancy coefficient confirmed for those born in 1964
The life expectancy coefficient has been confirmed for those born in 1964. The life expectancy coefficient is 0.94643, and it will reduce upcoming pensions by approximately 5.4 per cent.
The life expectancy coefficient is determined for each birth year category at the age of 62. The amount of the pension is multiplied by the life expectancy coefficient when the pension begins.
New age groups covered by pension entitlement
Those born in 1961 will reach their lowest retirement age of 64 years and 9 months. Those born in January-February will reach retirement age at the end of 2025 and those born later in 2026.
Partial old-age pension possible for those born in 1964
For those born in 1964, the minimum age for partial old-age pension is 62 years. This type of pension will become possible for them in 2026.
Years-of-service pension for those born in 1963
The lower age limit for the years-of-service pension is 63 years. In 2026, years-of-service pension will be possible for those born in 1963. You can apply for a preliminary decision on years-of-service pension three months before you plan to start your retirement.
Read more about different pension options and applying for pensions