The average monthly partial old-age pension in Finland in 2021 was €800, according to the Finnish Centre for Pensions (ETK).

This average was higher for men, however, at €890 a month, and women’s were €670 a month. Around 85 per cent of the partial old-age pensions in payment at the end of 2021 were taken out at the 50-per-cent level. The median monthly pension was €720.

In terms of the number of partial old-age pensions taken out, ETK said the coronavirus pandemic did not affect the number of new partial old-age pensions to any significant degree. In 2021, a total of 13,000 new partial old-age pensions started, the same level as in 2020.

At year-end 2021, a total of 31,600 persons received an old-age pension, which is around 2,500 persons more than in 2020. The number keeps rising, but at a slower pace than in the early days of the benefit. The growth is primarily due to the rising retirement age: the numbers grow as the partial old-age pensions are in payment for an increasingly longer period of time, ETK said.

The longer periods on the partial old-age pension also affect the size of the final pension. As a rule, the partial old-age pension is drawn as soon as possible, at age 61. As the retirement age rises from one age group to another, the permanent decrease for early retirement grows.

The earlier a person takes out the partial old-age pension, the larger the permanent cut to the final pension will be.

“In 2021, the youngest age cohort that could take out the partial old-age pension retired, on average, 41 months early. As a result, the paid-out pension (when taking out 50 per cent of the earned pension) was reduced by more than 16 per cent, which means a permanent cut of €145 per month to the average pension,” Finnish Centre for Pensions development manager, Jari Kannisto, said.

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