A typical partial early old-age pension recipient is a 61-year-old man who withdraws half of his pension early. The Finnish Centre for Pensions’ monthly statistics for February reveal that a fifth of those benefiting from the new type of pension are self-employed, and three out of four are working or have last worked in the private sector.
A total of 3,600 people had applied for the partial early old-age pension by the end of February 2017. Approximately 1,500 of them are already drawing their pension.
More than 90 per cent of those receiving a partial early old-age pension are drawing half of their accrued pension. Their average pension amounts to 900 euros per month. In practice, the earnings-related pension they have accrued is on a par with that of those retiring on an old-age pension.
The average partial early old-age pension for those who have withdrawn a quarter (25%) of their pension amounts to 460 euros per month.
Large partial old-age pensions of more than 1,500 euros account for over 10 per cent.
“For the time being, we only have information for the pensions beginning in February. It will be interesting to see whether the big picture will change over the course of the year,” says Tiina Palotie-Heino, Head of Statistics at the Finnish Centre for Pensions.
Men more interested in new type of pension
Sixty per cent of partial old-age pension recipients are men. Based on the applications, it seems that the proportion of men will increase further: two thirds of those who have filed an application are men.
More than half of the partial old-age pension recipients were born in 1955 and will turn 62 during this year. A vast majority – three out of four – are working or have last worked in the private sector. One in every five partial old-age pension recipient is self-employed.
Partial early old-age pension
- replaced the part-time pension in the 2017 pension reform
- provides persons aged 61 or over the opportunity to draw either one quarter (25%) or one half (50%) of their accrued pension
- is adjusted using both the life expectancy coefficient and the monthly 0.4 per cent reduction for early retirement
- reduces the part of the pension that is drawn permanently
- is not linked to working hours or salary monitoring. Both unemployed and employed persons can draw pension.
For further information, please contact:
Tiina Palotie-Heino, Head of Statistics, phone +358 29 411 2147 or +358 50 321 0910, tiina.palotie-heino(at)etk.fi
Jari Kannisto, Development Manager, phone +358 29 411 2232 or +358 50 368 7559, jari.kannisto(at)etk.fi