The Finnish Ministry of Social Affairs and Health has confirmed the life expectancy coefficient for earnings-related pensions for 2026, which will reduce starting pensions by 5.357 per cent.

In its latest update, the Ministry revealed that the life expectancy coefficient for the year 2026 will be 0.94643, compared to 0.94759 in 2025. 

The life expectancy coefficient, which is confirmed annually, is applied when a person takes out their earnings-related pension for the first time, as the pension amount listed on the pension record is multiplied by the estimated life expectancy coefficient.

This means that the 2026 life expectancy coefficient will reduce the old-age pensions under the Employment Pensions Act for those born in 1964 starting in 2026 or later by 5.357 percent. 

The life expectancy coefficient will also reduce disability pensions granted on the basis of disability under the earnings-related pensions acts starting in 2026. 

In addition, the life expectancy coefficient will affect survivor's pensions, partial early old-age pensions and career pensions granted under the earnings-related pensions acts next year.

However, the Ministry clarified that life expectancy coefficient will not be applied to the future pension component included in disability pensions.

The life expectancy coefficient, which was introduced in the 2005 pension reform, is intended to act as an automatic stabiliser that adjusts the monthly pension to the general development of life expectancy.

This means that if the average life expectancy in Finland continues to rise, the life expectancy factor will reduce pensions, and vice versa.

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