Life expectancy coefficient for 2018 confirmed

The Ministry of Social Affairs and Health has confirmed the life expectancy coefficient for 2018 to be 0.96102.

For those born in 1956, the coefficient will reduce old-age pensions under the earnings-related pension acts starting in 2018 or later by approximately four per cent. The life expectancy coefficient will also reduce disability pensions granted in 2017,  apart from the projected pension component, which is not affected by the life expectancy coefficient.

The life expectancy coefficient adjusts the level of starting earnings-related pensions and the pension expenditure in line with the changing average life expectancy.  As long as the average life expectancy continues to rise, the life expectancy coefficient will reduce monthly pensions.

The life expectancy coefficient was applied for the first time in 2010. The aim is to get people to work longer in order to make up for the cutting effects of the life expectancy coefficient. The target retirement age (the age at which the effect of the life expectancy coefficient has been removed) for those born in 1956 is 64  years and 5 months.

Read more about the life expectancy coefficient