When reviewing your pension record, the following instructions may be useful. If you need additional information about terms or figures in the record, find it from the list below. The instructions are listed in alphabetical order.
Earnings that serve as the basis of pension as of 1 January 2005
From the start of 2005, the earnings that serve as the basis of pension have been calculated separately for each year. The earnings included in the pension record are generally shown at the level of the year in which they were earned. If, however, your employer has opted for the monthly payroll reporting method during the years 2007–2018, the record will show your earnings per month.
As an entrepreneur, the amount of YEL income confirmed for earnings-related insurance is considered the earnings for pension purposes.
The earnings that serve as the basis of pension are adjusted to reflect their monetary value in the current year, and the amount of the employee’s pension contributions have been deducted from the earnings of the employee in 1996–2016.
Earnings that serve as the basis of pension up until 31 December 2004
The earnings that serve as the basis of pension were calculated until 31 December 2004 separately for each employment relationship. The earnings were the average annual earnings from the employment relationship in question.
As an entrepreneur, the amount of YEL income confirmed for earnings-related insurance is considered the earnings for pension purposes.
Estimate of the total earnings-related pension you have accrued
The pension record is an estimate of the earnings-related pension you have accrued from your entire work history. Note that although the pension record only shows the work history from the last six years, this sum includes the pension accrual from years that do not appear in the record.
The amount of the pension has been reduced by the life expectancy coefficient and possible public sector reduction.
Gainful employment that does not accrue pension
Under this heading you will find information about work that has been reported to the Incomes Register but which does not accrue pension. The most common reasons for this are that
- work prior to 1 January 2005 was done under the age of 23 (the age limit in the public sector has changed and additional information can be found from Keva’s website).
- your employment relationship lasted less than the minimum limit specified by law
- your earnings from the employment relationship were below the minimum limit for insurance as specified by law
- your LEL and TaEL earnings were below the minimum limit to accrue pension as specified by law
- as an entrepreneur, you were, upon application, exempt from the obligation to insure entrepreneurial activities
- wages were paid for work done after 31 December 2004 but before you turned 18
There is no need to provide us with any of this information.
Increase for late retirement
If you delay your retirement to a date beyond your minimum retirement age, your pension will be augmented with the increase for late retirement. As a result, your pension will be increased by 0.4% for every month in which you delay your retirement. This means that, for example, a delay of one year would increase your pension by 4.8%. There is no upper age limit for the accrual of the increase for late retirement.
If you are working at the same time, you will also continue earning pension for this work until you reach your maximum retirement age.
Please note, however, that your estimated pension amount does not include any possible reductions to the increase caused by unemployment benefits. This is because no increase for late retirement is accrued during periods when you are receiving unemployment benefits.
Increment for credited periods
Prior to 1994, an increment for credited periods was accrued from an employee’s unemployment allowance.
During the years 1994–2004, this increment was accrued from the unemployment allowance as well as, for example,
- adult education allowances
- rehabilitation benefits
- training allowances for the unemployed.
The increment for credited periods is not accrued from a calendar year in which the individual was working the entire year or in which they earned a certain level of LEL earnings (from work done in employments for the building, forestry, harbour and farming industry).
For entrepreneurs, the increment for credited periods may not have begun to accrue until the beginning of 1994.
LEL and TaEL work
Any work done under LEL and TaEL insurance is included in the pension record but without starting and ending dates or names of employers. There is no need to provide us with information on these employment relationships. Ensure, however, that the record lists the correct annual earnings for these employments.
LEL insurance was used earlier to insure work done in employments for the building, forestry, harbour and farming industry.
Starting in 1986, TaEL insurance covered the employment relationships of journalists and artists as well as other professional groups carrying out creative pursuits, as specified in the Pensions Act for Performing Artists and Certain Groups of Employees. In 1998, the TaEL sphere was expanded to include also temporary employment relationships in private sector fields other than those covered by LEL insurance.
The life expectancy coefficient
The amount of the accrued pension is adjusted to the estimated life expectancy using the life expectancy coefficient specified for your age group. Since the average life expectancy in Finland is rising, the amount of the monthly pension needs to be decreased to ensure that the pension will last one’s entire life.
Pension accrued during unpaid periods
Total pension accrued during unpaid periods. The amount of the accrued pension is stated at the level of the year the record is issued.
Pension accrued in XXXX
Pension accrued from work and entrepreneurial activities carried out during the year in question. The amount of the accrued pension is stated at the level of the year the record is issued.
Pension at the level of 2024
This column shows the pension you have accrued from each period of work.
Up until the end of 2004, pension accrual was calculated per employment relationship The pension accrual was then affected by the earnings serving as the basis for the pension, the duration of the employment relationship and the accrual rate determined by one’s age. The accrual rates were:
- 1.5% between 23–59 years of age
- 2.5% between 60–64 years of age
The accrual rate in the public sector may have been different as a result of the starting date of the above-mentioned employment relationship. More information is available from Keva’s website.
From 2005 onwards, the pension has been calculated annually. During the period of 1 January 2005–31 December 2016, pension accrued based on earnings per year
- 1.5% for those 18–52 years of age
- 1.9% for those 53–62 years of age
- 4.5% for those 63–67 years of age
Legislation that entered into force at the start of 2017 stipulated that pension would accrue from 1 January 2017 onwards at a rate of 1.5% for all workers over the age of 17 (with the exception that the age limit for entrepreneurs is 18). As an exception, the accrual rate for those aged 53–62 is 1.7% during the years 2017–2025.
Pension is accrued up until the maximum retirement age. The maximum retirement age depends on your age group.
Pension cap in the public sector
Since 2005, there has been no upper limit for pension accrual, so the longer you work, the better your pension will be. Up until the end of 2004, however, there was a pension cap on any pension accrued from work done for a municipality, the State or the Church. This pension cap affects the amount of your overall pension. The pension cap only affects pensions in the public sector. More information on this can be found from Keva’s website.
Retirement
If you have been receiving disability, unemployment or part-time pension after 1 January 2005, this will be marked in your pension record.
For example, the amount of accrued pension from the period of ongoing part-time pension cannot generally be calculated until retirement on old-age pension. The pension accrued from part-time work is, however, included in the record normally along with other earnings.
Retirement age for old-age pension
The retirement age for old-age pension is determined by the year in which you were born. Your retirement age is stated in your pension record.
If you were born in 1965 or after, your retirement age for old-age pension has not yet been confirmed. The retirement age for old-age pension will be confirmed in the year that you turn 62.
Target retirement age
Your target retirement age represents the age at which you should retire in order for you to accrue an increase for late retirement that would compensate for the reduction caused by the life expectancy coefficient.
Unpaid periods
Starting on 1 January 2005, you earn pension between the ages of 18–67 from those unpaid periods during which you have received an earnings-related allowance.
You also earn pension between the ages of 18–67 from time spent caring for a child under the age of three at home or studying towards a degree or qualification. Any pension earned during studies will be included in the pension record once the resulting degree or qualification has been completed.
The pension is calculated on the basis of the earnings on which the allowance is based. Pension earned during a child home care allowance or studies is based on a fixed income amount of EUR 857,15 per month (at the level for 2024). Regardless of one’s age, pension accrues at a rate of 1.5% per year for unpaid periods.
The benefits during unpaid periods are generally registered at the start of the year following the year in which they are paid. This is also the time when they will show up in your pension record.
Your future pension
The estimated amount of old-age pension shown in your pension record has been calculated on the basis of earlier income. If your income has changed, you can calculate an estimate using our pension calculator.
Pension estimates given after you have reached your minimum retirement age include an increase for late retirement. Please note, however, if you are older than your minimum retirement age and you receive an unemployment benefit, this may affect the sums. No increase for late retirement is accrued during periods when you are receiving unemployment benefits. In this case, we suggest that you contact Veritas’ pension advisers to get an estimate of your future old-age pension.
