Towards the end of a career, many people consider how their livelihood will be secured if unemployment occurs unexpectedly or if continuing to work until retirement age is no longer possible.
As a member of A-kassa, you may be entitled to earnings-related allowance even before retirement. In some situations, an alternative may also be to retire before the statutory retirement age.
Income security before retirement
If you become unemployed or laid off towards the end of your career, you may be entitled to earnings-related allowance under the normal conditions for receiving the allowance.
To receive earnings-related allowance, you must be registered as a jobseeker and meet the other conditions for receiving the benefit. For those over the age of 58, the maximum payment period is 500 days if you have at least five years of work history during the last 20 years.
You may receive earnings-related allowance after the maximum period in the form of so-called additional days up to the age of 65, if you meet certain age and work history requirements.
The minimum age for additional days depends on your year of birth. For those born between 1961 and 1964, eligibility is determined, for example, by the age at which the maximum period of the allowance is reached.
| Year of birth | Must be met no later than the 400th or 500th day of allowance | Work history must be at least at the point when 400 or 500 days are reached |
| 1961–1962 | The applicant must be at least 62 years old | At least 5 years within the last 20 years |
| 1963 | The applicant must be at least 63 years old | At least 5 years within the last 20 years |
| 1964 | The applicant must be at least 64 years old | yAt least 5 years within the last 20 years |
| 1965- | No entitlement to additional days |
An additional requirement is that you have worked for at least five years during the last 20 years. Those born in 1965 or later are not entitled to additional days.
Once the maximum payment period has been reached, your livelihood will be secured through other benefits, such as those provided by Kela, or through a pension.
It is possible to work while receiving the allowance, in which case the allowance can be paid as an adjusted benefit.
When continuing to work is no longer possible
In some situations, work ability may be reduced to the extent that continuing to work is no longer possible. In such cases, it may be necessary to explore different pension options.
Years-of-service pension – an option for those with a long career
The years-of-service pension is intended for individuals who have had a long and physically demanding career and whose work ability has declined before reaching retirement age.
To receive the pension, it is required, among other things, that you have a long career of at least approximately 38 years in demanding work, as well as a permanently reduced work ability due to illness or injury. In addition, the applicant must have reached the age of 63.
A years-of-service pension may be an option, for example, when continuing to work is no longer possible due to health reasons and the career has been long and demanding.
Typical sectors where work is physically demanding include construction, industry, transport, and warehouse work. However, assessments of the strain of the work are always made based on the individual overall situation.
It is important to note that the years-of-service pension differs from disability pension: it specifically emphasizes the impact of a long and demanding career on work ability.
The years-of-service pension is applied for from your own pension insurance company and is not granted by the unemployment fund. However, the fund can assist with questions related to income security.
Other pension options in brief
In addition to the years-of-service pension, one option may be a partial early old-age pension, which allows you to start drawing your pension before the statutory retirement age.
Another option may be a disability pension if your work ability has declined more broadly.
What should you do?
If your work ability has declined and you are unsure about continuing to work, it is advisable to assess your situation early on. A-kassa can advise you on matters related to income security, and you can get more information about pension options from your own pension provider.
A comprehensive assessment of your situation will help you find the solution that suits you best.
Read more: Maximum payment period and additional days
Read more: Illness and incapacity for work