Life expectancy coefficient confirmed for 2019

The Ministry of Social Affairs and Health has set the life expectancy coefficient for 2019 at 0.95722.

The confirmed life expectancy coefficient will reduce the old-age pensions under the earnings-related pension system of those born in 1957 (they can retire on an old-age pension in 2019 or later) by 4.278 per cent. The life expectancy coefficient will also reduce the disability pensions granted in 2019. The projected pension component of disability pensions will not be reduced, however, since it 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 1957 is 64  years and 9 months.

More about the life expectancy coefficient.