The number of pension claims made by Finnish people “soared” at the end of 2022 due to the increase in the earnings-related pension index, according to the Finnish Centre for Pensions (ETK).

ETK noted that the increase in the earnings-related pension index was higher than the rise in the wage coefficient, encouraging people to claim their pension in 2022.

Nearly 25,000 Finns claimed a partial old-age pension in September-December 2022.

During the same period in 2021, the number of people claiming a partial-old age pension was just over 4,000.

Furthermore, the growth in claims also showed in the number of people starting pensions, with around 16,000 new partial-old page pensions started in December 2022.

In total, 34,600 partial old-age pensions were started in 2022, while in the previous two years new partial-old age pensions numbered around 13,000 a year.

“A 50-per-cent partial old-age pension that started in December was, on average, €900 per month,” commented ETK development manager, Jari Kannisto.

“This is an amount that is around 20 per cent higher than in December 2021.”

The number of regular old-age pension claims was also higher in 2022 than previous years, with the rise in claims in the autumn bringing the number of old-age pensions started in December 2022 to three times the normal level.

Due to the increase in the pension index, a pension started in December 2022 was increased immediately in January 2023 by 6.8 per cent.

If the pension started in January 2023, the annual earnings the pension is based on was increased to the level of the starting year by the wage coefficient.

The wage coefficient rose by 3.8 per cent, 3 percentage points lower than the pension index.

“As a rule, the wage coefficient increases more than the pension index,” said Kannisto.

“This time, it was the other way around, and the difference was significant.

“By starting to draw the partial old-age pension in December 2022, it was possible to take advantage of this unusually high increase in the earnings-related pension index.”

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