Finnish Pension Adjustments and Tax Changes for 2025 Announced by Varma

Finnish pension provider Keskinäinen työläkeyhtiö Varma has detailed upcoming changes to earnings-related pensions effective from the start of 2025. The company announced that pensions payable in 2025 will be increased by approximately 1.3 percent, based on the earnings-related pension index. This adjustment applies to pensions that commenced no later than December 1, 2024, and covers various pension types including old-age, partial old-age, disability, and survivor's pensions.

Varma will automatically apply these pension increases in January, eliminating the need for individual applications. The payment dates for pensions in 2025 have been confirmed, with the January payment scheduled for January 2nd. A significant change for pensioners is the shift in tax card implementation. Starting in 2025, new tax cards will be effective from January 1st, instead of February 1st. Varma will receive the 2025 tax card information directly from the Finnish Tax Administration by mid-December.

New age limits for pension eligibility will also come into effect. Individuals born in 1961 will be eligible for old-age pension at 64 years and 9 months. The age limit for partial old-age pension will increase, with those born in 1963 eligible at age 61 and those born in 1964 at age 62. Furthermore, a new option for a years-of-service pension will be available for those born in 1962, starting at age 63.

Varma advises individuals planning to retire at the beginning of 2025 to submit their pension applications approximately four weeks in advance to ensure timely processing, especially during the busy year-end period. The company also noted that rules regarding working while receiving an old-age pension have been updated, with specific application procedures for accrued pension amounts. The wage coefficient used in calculating earnings-related pensions will also see an increase of about 2.2 percent for 2025.