Pensions will rise by 1.3 per cent as of the beginning of the year
Earnings-related pensions payable in 2025 will be increased by the earnings-related pension index by approximately 1.3 per cent when compared to 2024. The earnings-related pension index is used to adjust any earnings-related pensions to be paid that have started no later than on 1 December 2024. The earnings-related pension types to be increased are: old-age pension, partial old-age pension, disability pension, partial disability pension, cash rehabilitation benefit and partial cash rehabilitation benefit, rehabilitation allowance, years-of-service pension and survivors’ pensions (surviving spouse’s pension and orphan’s pension).
No separate index adjustment application is required, as we will automatically increase pensions in January.
Read our news release for more information on the index change
Pension for January will be paid on 2 January. Check the payment dates of all monthly pensions next year in the payment date calendar.
Pension taxation
From 2025, tax cards will enter into force at the beginning of the year. The tax card for 2025 will therefore be used in the taxation of pension from 1 January 2025. Previously, the new tax rates were adopted on 1 February.
We will receive pensioners’ tax cards for 2025 directly from the tax authorities by mid-December. If you receive pension from Varma, you do not need to submit the tax card sent to us by the tax authorities. You can raise the tax rate provided by the Tax Administration in Varma Online Service once you have received information from the tax authorities about the tax rate for 2025.
If you are about to retire in early November or December, order a tax card for the remainder of 2024 and separately for 2025 from vero.fi, as in these situations we will not automatically receive tax cards for the year following the year in which your pension starts. Once you have ordered the tax card, the tax authorities will submit it directly to Varma.
If you are a Varma rehabilitee, you must submit a new tax card for the rehabilitation allowance as in previous years.
Read our news release for more information on the tax card change
Letters to pension customers at the turn of the year
The letters to our pension customers will be available in our online service by the end of the year. Our pension customers will also receive the turn-of-the-year letter by post in early January. In the letter, you will find next year’s pension amount and the pension payment dates. In addition, the letter will show the total amount of pensions paid and the amount of tax withheld. The letter will also provide residence report confirmation instructions for pension recipients living abroad.
New age group for old-age pension, the age limit for partial old-age pension will raise
Old-age pension will become possible for those born in 1961 as they reach their minimum retirement age, 64 years 9 months. For a person born in January 1961, old-age pension may thus start on 1 November 2025.
The age limit for partial old-age pension will increase. For those born in 1963, it is 61 years, and for those born in 1964, it is 62 years, meaning that they can apply for partial old-age pension in 2026 at the earliest.
Years-of-service pension will be possible for those born in 1962 starting from the age of 63. You can apply for a preliminary decision on years-of-service pension three months before you plan to start your retirement.
Retiring after the turn of the year? Apply for pension in time
The turn of the year is a busy time for our customer service. If you are applying for pension from the beginning of January or February, act in time and apply for pension approximately four weeks before your planned retirement. Complete the application through Varma Online Service.
Working while on old-age pension – apply for the payment of pension at the age of 68
If you have worked alongside old-age pension, apply for the pension accrued at the age of 68 (the highest retirement age). For those born in or after 1958, the age limit is 69 years.
This is how apply for the pension accrued by working during retirement
Wage coefficient
The wage coefficient used in the calculation of earnings-related pension will increase the wages and confirmed income for your working career by approximately 2.2 per cent in 2025. The wage coefficient is used when you retire.
Life expectancy coefficient
The life expectancy coefficient has been confirmed for those born in 1963. The life expectancy coefficient is 0.94759, and it will reduce upcoming pensions by 5.2 per cent.
The life expectancy coefficient is determined for each birth year category at the age of 62. The amount of the pension is multiplied by the life expectancy coefficient when the pension begins.
Read our news release for more information on the life expectancy coefficient (in Finnish)
Employee’s pension contribution
Employee’s pension contribution will remain unchanged in 2024, with the amount being
- 7.15 per cent for employees under 53 years of age
- 8.65 per cent for employees aged 53–62
- 7.15 per cent for employees aged 63 or older.
Read our news release for more information on earnings-related pension contributions