As a rule, a partial early old-age pension does not affect earnings-related unemployment allowance. In other words, the pension is not a benefit that prevents you from receiving earnings-related unemployment allowance and is not deducted from the allowance. However, a partial early old-age pension may have an impact on the amount of full earnings-related unemployment allowance calculated by the fund and on the payment status of the allowance.
You can apply for partial early old-age pension from your employee pension institution. You can retire on a partial early old-age pension at the earliest when you turn 61 if you were born in 1963 or earlier. If you were born in 1964, you can retire on a partial old-age pension at the age of 62.
- Withdrawing the pension early reduces your pension permanently for the rest of your life.
- The amount of pension to be paid is permanently reduced by 0.4 per cent for each month you retire before your actual old-age retirement age.
- When you retire on a partial old-age pension, you can choose whether you want to receive 25% or 50% of your accrued pension
- Partial early old-age pension is not tied to a reduction in working hours. This means that you can work shortened hours or, if you wish, also normal full hours while receiving the pension
Effects on how the amount of earnings-related unemployment allowance is determined
The amount of earnings-related unemployment allowance for the period while you receive partial early old-age pension is determined immediately before the start of unemployment or temporary lay-off.
If you have worked full-time while receiving your pension, the period which you receive the pension has no effect on the amount of the daily allowance.
If you have worked part-time while receiving your pension, your daily allowance is determined based on income from part-time work. In this case, the amount of the full daily allowance is less than the allowance determined based on income from full-time work.
Effects on the payment of earnings-related security
If you have worked full-time, receive a partial early old-age pension and are unemployed or laid off, the payment of your daily allowance is not affected. In other words, you will receive a full daily allowance even if the partial early old-age pension continues while you are unemployed. The partial early old-age pension is not deducted from your daily allowance.
If you have worked part-time, receive a partial early old-age pension, and become unemployed or are laid off, you will be paid adjusted daily allowance, and the wages for part-time work paid during the four-week or one-month conciliation period will affect the amount of earnings-related allowance. The partial early old-age pension is not deducted from your daily allowance.
Example 1: Full-time work and partial early old-age pension
You have worked full-time while receiving a partial early old-age pension. Your full-time salary is 2,500 euros per month, of which the amount of full daily allowance is 70.49 euros. Your become unemployed and after the waiting period, receive the full daily allowance of 70.49 euros per day.
Example 2: Part-time work and partial early old-age pension
You have worked part-time while receiving a partial early old-age pension. Your part-time salary is 1,875 euros per month, of which the amount of full daily allowance is 57.98 euros. You become unemployed. You are still paid the part-time salary of 1,875 euros during your first adjustment period. After the waiting period, you will receive an adjusted daily allowance of 0.58 euros per day. If the next application period no longer has a payday for the part-time work, you will receive the full daily allowance of 57.98 euros per day for the following period.
You can get more information from your pension company
Please find out the amount of your pension from your own employee pension institution before applying for a partial old-age pension.
You can also find more information about the partial old-age pension on the website of the Finnish Centre for Pensions.