People born in 1961 reach their retirement age

In 2026, everyone born in 1961 will reach their retirement age for the old-age pension: 64 years and 9 months. For example, if you were born in December 1961, you can retire from 1 October 2026 at the earliest. If you were born at the beginning of 1961, you reached your retirement age already at the end of 2025.

It’s important to keep in mind, though, that the longer you continue working and the later you choose to retire, the higher your earnings-related pension will be.

The age when the insurance obligation ends goes up by one year

From the beginning of 2026, employers’ and self-employed persons’ obligation to take out earnings-related pension insurance expands by one year and ends at age 69 instead of 68. This change applies to you if you were born between 1958 and 1961. This means that you can earn pension for one more year.

The age when your insurance obligation ends is also the age at which you can claim any pension you have earned from working while already drawing a pension.

Partial old-age pension available for a new age group

Those born in 1964 can claim a partial old-age pension at age 62. If you belong to this age group, you can claim a partial old-age pension in 2026 once you have turned 62. You can also choose to claim a partial old-age pension later, after you have reached your retirement age for the full old-age pension.

Standardised earnings-related pension contribution and pension accrual rates

In recent years, employees aged 53–62 years have paid higher pension contributions and accrued pension at a higher rate than other age groups.

In 2026:

• The TyEL contribution rate is 7.3 per cent of the monthly wage for all employees.
• The YEL contribution rate is 24.4 per cent of the confirmed income for all self-employed persons. Newly self-employed persons pay a lower YEL contribution.

As of 2026, you accrue pension at a rate of 1.5 per cent of your annual earnings or confirmed income from self-employment, regardless of your age. Previously, those aged 53 to 62 accrued pension at a higher rate of 1.7 per cent.

This change is a result of the 2017 pension reform, which set out that age-based contribution and accrual rates would be phased out by the end of 2025.

Pensions will increase by nearly one per cent

Every year, pensions in payment are adjusted with the earnings-related pension index to help maintain purchasing power. This year, pensions will increase by approximately 0.9 per cent at the start of the year.

For example, if your current gross monthly pension is 2,000 euros, you can expect to get an additional 18 euros per month because of this adjustment.

The wage coefficient makes sure that the value of the pension you have accrued during your working life maintains its value in line with changes in average earnings. It updates your past wages and income to the level of the year you retire, helping to protect your pension’s purchasing power. In 2026, the wage coefficient will increase by around 2.3 per cent compared to 2025.

Life expectancy coefficient cuts new earnings-related pensions by 5.4%

The impact of the life expectancy coefficient on your pension amount is calculated when your pension begins – that is, at the time your pension is granted. The coefficient is confirmed for each age group when they reach the age of 62.

The confirmed life expectancy coefficient reduces your earnings-related old-age pensions by 5.4 per cent if you were born in 1964 and your old-age pension starts in 2026 or later.

The pension estimate shown on your pension record already takes into account the effect of the life expectancy coefficient. By postponing your retirement and continuing to work, you can reduce the effect of the life expectancy coefficient on your final pension.

Upper limit for increases to confirmed YEL income for the newly self-employed

If you are self-employed, under the YEL reform introduced in 2023, pension providers review your YEL income every three years to make sure that it accurately reflects your work input.

During the first two reviews, your pension provider can raise the confirmed income by a maximum of 4,000 euros each time. You pension insurance payments are calculated based on your confirmed YEL income, so this could mean an increase of up to approximately 80 euros per month with each adjustment.

From the beginning of 2026, this upper limit for increases will also apply to newly self-employed, that is, to those of you who have taken out your YEL insurance between 2023 and 2025. In that case, the upper limit reflected to the increase will be in effect during your first review.

In 2026, an income review will be carried out for YEL insurances that began in 2023, as well as for incomes that have not been reviewed in the past three years.