Varma Pension Company Receives Record Inquiries About Partial Old-Age Pension
In autumn 2022, the Finnish pension company Varma has received a record number of inquiries about partial old-age pensions. The surge is attributed to a significant index increase planned for next year and the general rise in price levels.
Finnish pension provider Varma has experienced an unprecedented volume of inquiries regarding partial old-age pensions during the autumn of 2022. The number of pension applications also saw a substantial increase, rising by 93 percent in September and increasing tenfold in October compared to the same period last year.
The primary drivers behind this heightened interest are the upcoming 6.8 percent index increase for pensions in 2023, which also applies to partial old-age pensions, and the broader rise in the cost of living.
Partial old-age pensions, colloquially known as "the door," allow individuals to withdraw 25 or 50 percent of their accrued pension before reaching the statutory retirement age. Applications can be submitted from age 61, with no retroactive payments. Taking a partial pension before the minimum retirement age results in a permanent reduction of 0.4 percent per month for the portion withdrawn.
Varma emphasizes that applying for a partial pension should not be rushed. It is crucial to understand all implications, including long-term effects, before making a decision. The company offers pension estimations and calculators to help individuals assess their pension amounts and future benefits. Continuing to work beyond the minimum retirement age while on a partial pension can also lead to delayed retirement increases.