The Finnish 2005 Pension Reform

Flexible Retirement on Old-age Pension Between the Ages of 63 and 68

Prior to 2005, the general old-age retirement age was 65 years. As of the beginning of 2005, it is possible to retire flexibly on an old-age pension between the ages of 63 and 68. Each and every one can decide for him or herself whether to retire at 63 or to continue working.

A person who has reached the age of 62 may retire on an early old-age pension. Early retirement reduces the pension permanently. A person retiring on old-age pension at the age of 63 will receive the accrued pension amount adjusted with the life expectancy coefficient.

Public-sector individual lower occupational and graded retirement ages selected in the 1990s remain valid after the 2005 reform. Linked to these lower retirement ages is the possibility to receive an early old-age pension prior to the age of 62.