The Ministry of Social Affairs and Health in Finland has confirmed that the occupational pension index will increase by 6.8 per cent at the start of 2023.

Meanwhile, the wage coefficient index will rise by 3.8 per cent.

Due to rapidly rising inflation, the occupational pension index will grow significantly more than the wage coefficient.

In 2023, the occupational pension index will be 2874, which means an increase of around 6.8 per cent to occupational pensions at the turn of the year.

The wage coefficient for 2023 was confirmed at 1.558, an increase of 3.8 per cent year-on-year.

At the time of retirement, the wage coefficient adjusts career lifetime earnings to the level of the year in which the pension begins.

The Finnish Centre for Pensions (ETK) noted that, due to the “exceptionally high” increase in the occupational index, the timing of retirement at the turn of the year will make a big difference.

A person retiring in 2022 will get a higher index increment than a person who retires in 2023.

"Employment pensions will be increased at the turn of the year by 6.8 percent,” commented Veritas pension specialist, Pirta Toivonen.

“The increase will be paid to the people who already receive a pension or those who will start receiving a pension at the latest at the beginning of December.

"Only on the basis of the index increase, it does not pay to make major changes to one's plans. The salary is often greater than the pension and if you continue to work, you collect even more pension.”

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