New pension benefits 31 Jul 2018
A more recent publication of this set of statistics is available: New pension benefits
Majority of partial old-age pension applicants work
By the end of July 2018, roughly 20,500 persons have applied for the partial old-age pension. Of them, 6,200 have submitted their application this year. The majority of the applicants, around 60 per cent, are men.
Nearly 80 per cent of those who have applied for a partial old-age pension between the period 1 January – 31 July 2018 were working at year-end 2017. Of those working, nearly 18 per cent were self-employed. Slightly less than 200 persons, or 4 per cent of all applicants, were farmers.
Around 900 persons, or 14 per cent of all applicants, were unemployed. Of the unemployed, 16 per cent were men and 12 per cent women. Nearly two out of three unemployed were not working at all in 2017. The ratio of employed and unemployed applicants for the partial old-age pension was the same in 2017.
Years-of-service pension granted to 17 persons
The years-of-service pension was introduced in connection with the 2017 pension reform. It can be granted to individuals who were born in 1955 or after, have done work that requires great mental or physical effort for at least 38 years, and whose ability to work has been reduced.
The first years-of-service pensions were paid out in the spring of 2018.
Situation per 31 July 2018
17 applicants have been granted a years-of-service pension. One of them is a woman.
8 applicants have been granted an old-age pension.
3 applicants have been granted a full disability pension.
21 applications have been rejected:
- 6 rejections: The work done has not required enough physical or mental effort.
- 9 rejections: No such work that is required to get the pension, or other legal reason.
- 6 rejections: Other reasons.
- Two of the rejected applications have been issued a preliminary decision for a partial disability pension.
Years-of-service pension is paid out to 7 applicants
- Average monthly pension: €1,874
- All recipients are men.
Two years-of-service pensions has ended.
Partial old-age pension popular
The partial old-age pension was introduced in connection with the 2017 pension reform. This pension benefit has been popular from the start. By the end of 2017, more than 14,000 applications for a partial old-age pension were submitted, based on which 12,500 persons started to draw a partial old-age pension last year.
The number of applications is high when proportioned to the number of people who are eligible for this pension. Those born in 1956 were most inclined to apply for a partial old-age pension (9.7 per cent). Of the non-retired men born in 1956, 11.5 per cent applied for the partial old-age pension. The equivalent figure for women was 8.0 per cent.
Of the new partial old-age pensions, 10,700 were taken out early. On average, people took out their pension 22 months early, which means that the part of their pension that they took out early was permanently reduced by around 70 euros per month. Around 300 persons took out their partial old-age pension at their retirement age while 1,500 persons took out a late old-age pension. The part of the pension that was taken out late was increase by the increment for late retirement.
Nearly 90 per cent of those who took out a partial old-age pension took out 50% of the pension they had earned. The average partial-old-age pension was 810 euros/month. The median partial old-age pension was €100 less. The average pension of those who took out 25 per cent of their earned pension was €430/month (median pension €380/month).
Partial Old-age Pension in Figures, 31 Dec. 2017
| Group | Total number of recipients | Males | Females |
|---|---|---|---|
| Starting pensions, of which | 12,500 | 7,200 | 5,200 |
| – in the private sector | 8,800 | 5,900 | 2,900 |
| – 50% taken out | 11,000 | 6,600 | 4,400 |
| 25%>50% | 114 | 60 | 54 |
| Cancelled, of which | 82 | 34 | 48 |
| – in the puclic sector | 57 | 17 | 40 |
| Ended; cause of ending: | 891 | 492 | 399 |
| – death | 28 | 23 | 5 |
| – full old-age pension began | 861 | 469 | 392 |
| – other pension began | 2 | 1 | 1 |
| In force on 31 Dec. 2017 | 11,700 | 6,800 | 4,900 |
| – 50% | 10,300 | 6,200 | 4,100 |
| – 50% , average pension (€/month) | 800 | 890 | 680 |