Retirement age confirmed for those born in 1965 – linked to life expectancy for the first time
Were you born in 1965? You can start drawing an old-age pension at 65 and a partial old-age pension at age 62 at the earliest. Your age group is the first to have its retirement age linked to life expectancy.
The rules for determining the retirement age for the old-age pension will change at the start of next year. For those born in 1965 or later, the minimum retirement age will be linked to changes in life expectancy. Each year, the Ministry of Social Affairs and Health confirms the retirement age for one birth cohort.
The minimum retirement age for those born in 1965, calculated on the basis of life expectancy, is 65 years. Their target retirement age is 66 years and 3 months.
”The minimum retirement age for those born in 1965 is 65 years, the same as for those born between 1962 and 1964. Life expectancy has not increased enough to raise the retirement age in this first review”, says economist Timopekka Hakola from the Finnish Centre for Pensions.
Your retirement age will be confirmed in the year when you turn 62
The retirement age for the old-age pension depends on your year of birth. It can change only slightly from one birth cohort to the next.
“From the start of next year, the retirement age can differ by no more than two months from the age confirmed for the previous birth cohort”, Hakola explains.
The minimum age for the partial old-age pension will also depend on your year of birth
In future, the minimum age for the partial old-age pension will also be adjusted to changes in life expectancy. It will always be three years below the minimum retirement age for the old-age pension.
For those born in 1965, the minimum age for the partial old-age pension is 62 years.
The life expectancy coefficient for those born in 1965 reduces starting earnings-related pensions by 5.5%
The life expectancy coefficient for those born in 1965 has been confirmed at 0.94453. This reduces their starting pensions by approximately 5.5 per cent.
The pension amount is multiplied by the life expectancy coefficient when the pension starts, that is, when it is granted.
The Finnish Centre for Pensions calculates the life expectancy coefficient each year. The Ministry of Social Affairs and Health then confirms it by decree.
Table. Minimum old-age pension retirement age and life expectancy coefficients confirmed for different birth cohorts
| Year of birth | Minimum retirement age | Life expectancy coefficient | Effect on starting monthly pension, % |
|---|---|---|---|
| 1965 | 65 years The minimum retirement age for the old-age pension is linked to life expectancy. | 0.94453 | -5.5% |
| 1964 | 65 years | 0.94643 | -5.4% |
| 1963 | 65 years | 0.94759 | -5.2% |
| 1962 | 65 years | 0.94692 | -5.3% |
| 1961 | 64 years 9 months | 0.94419 | -5.6% |
| 1960 | 64 years 6 months | 0.94659 | -5.3% |
Example of how the life expectancy coefficient affects your pension amount
You were born in 1965. By the time your old-age pension begins, you have accrued a monthly earnings-related pension of 2,100 euros. The confirmed life expectancy coefficient for those born in 1965 is 0.94453. The pension you have accrued is multiplied by the life expectancy coefficient.
€2,100 × 0.94453 = €1,983.51
If you retire when you reach your minimum retirement age for the old-age pension, your gross pension is €1,983.51.
You can compensate for the reducing effect of the life expectancy coefficient by continuing to work and retiring when you reach your target retirement age.
Check your own target retirement age in the pension calculator at the website Tyoelake.fi or your pension record.
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