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I want information about the index increments at the turn of the year 2024/2025
The pension system uses two indices: the wage coefficient and earnings-related pension index.
The wage coefficient and earnings-related pension index
When you retire and the amount of your pension is calculated, the wage coefficient is used to adjust wages and confirmed income for your working career to the level of the year when the pension starts. The wage coefficient ensures that the accrued pension retains its value relative to how earnings have developed.
During retirement, the earnings-related pension index protects your pension when prices and wages rise. The amount of your pension is adjusted each January on the basis of the earnings-related pension index.
Index increments for 2025
The Ministry of Social Affairs and Health has confirmed the next year’s indices. In 2025 the wage coefficient is higher than the earnings-related pension index. The wage coefficient increases the earned income affecting pension by approximately 2.2 per cent and the earnings-related pension index increases the pensions paid by 1.3 per cent compared to 2024.
The longer you work, the bigger your pension will be. Retiring on 1 January 2025 would result in a slightly higher pension than retirement on 1 December 2024.
You can log in to Varma Online Service to calculate your estimated pension based on the new indices.
Example:
If you retire on 1 December 2024, earned income affecting your pension is adjusted by using the 2024 wage coefficient. The earnings-related pension index will increase the amount of your pension paid by 1.3 per cent from 1 January 2025.
If you retire on 1 January 2025, the earned income affecting your pension is adjusted by using the 2025 wage coefficient. The increase will be 2.2 per cent. Your pension will not be increased with the earnings-related pension index for the first time until 1 January 2026, using the earnings-related pension index for 2026.
