Two indexes affect earnings-related pensions: the earnings-related pension index and the wage coefficient. The aim of the earnings-related pension index is to retain the purchasing power of pensions in payment. The wage coefficient, on the other hand, affects starting pensions: it brings the pensioner’s career earnings up to the level of the year of retirement.  

The current estimate of the Finnish Centre for Pensions is that the earnings-related pension index will grow slightly more than the wage coefficient in January 2024. It follows that a person who retires in 2023 may get a slightly higher index increment than a person who retires after the turn of the year, in 2024. The effect is similar also for the partial old-age pension. The gap would appear to remain at less than one percentage point. The Ministry of Social Affairs and Health will publish the confirmed earnings-related pension indexes for 2024 at the end of October.

Retirement should be planned and timed based on one’s own situation. The significance of the indexes varies per person depending on, among other things, working life, employment state and already accrued pension. If you take out earnings-related benefits, check also how that will affect your taxation. Earnings-related benefits may also affect benefits and pensions paid by Kela.

If you have already retired, your pension will automatically be increased with the earnings-related pension index at the beginning of 2024. You don’t have to apply for the increase.