Pension accrual (TyEL) 2026: 1.5% a year and the life-expectancy coefficient
Earnings-related pension accrues at 1.5% of your annual earnings every year. For example, €40,000 of annual earnings accrues €600 of yearly pension, i.e. about €50/month. The accrued amount is adjusted each year by the wage coefficient so it keeps its value.
When you retire, a life-expectancy coefficient is applied to the starting pension, which in 2026 is 0.94643 and reduces the pension by about 5.4%. By working longer you can grow the pension from two directions. Below are all three factors.
- 1.5%
- accrual of annual earnings
- 0.94643
- life-expectancy coefficient 2026
- 0.4%
- deferral increase / month
- €50
- /month per €40,000 annual earnings
How does earnings-related pension accrue?
Earnings-related pension accrues at 1.5% of each year’s gross earnings across your whole career (also from many unpaid periods). The accrued pension is adjusted yearly by the wage coefficient to keep its value. The most accurate starting figure is your own pension record (työeläkeote) at työeläke.fi, which shows the pension accrued so far in euros per month.
What is the life-expectancy coefficient?
The coefficient is applied to the starting pension and ties its level to life expectancy: as life expectancy rises, the coefficient reduces the starting pension. In 2026 the coefficient is 0.94643, reducing the pension by about 5.4%. You can compensate for the effect by working a little longer.
How much does the pension grow by deferring?
Deferring grows the pension from two directions: the deferral increase is 0.4% for every month postponed past the lowest retirement age (4.8% a year), and continued work accrues a further 1.5% of pension.
| Factor | 2026 |
|---|---|
| Accrual | 1.5% of the year’s gross earnings |
| Example | €40,000/yr → €600/yr (€50/mo) |
| Life-expectancy coefficient | 0.94643 (reduces by 5.4%) |
| Deferral increase | 0.4%/mo (4.8%/yr) |
| Most accurate starting figure | your own record (työeläke.fi) |
Calculators for this topic
FAQ
How much pension accrues per year?
Pension accrues at 1.5% of the year’s gross earnings. For example, €40,000 of annual earnings accrues €600 of yearly pension (€50/month). The accrual is adjusted yearly by the wage coefficient.
What is the 2026 life-expectancy coefficient?
In 2026 the coefficient is 0.94643. It reduces the starting old-age pension by about 5.4%. The effect can be compensated by continuing to work.
How much does the pension grow if I keep working?
You get a deferral increase of 0.4% for each month past the lowest retirement age (4.8%/year) and additionally accrue a further 1.5% of pension.
Where do I see my accrued pension?
From your pension record (työeläkeote) at työeläke.fi or your pension company’s service. It shows the pension accrued so far in euros per month.
Is the calculator estimate official?
No. The calculator gives an indicative estimate from your inputs. An official forecast comes from your pension company or työeläke.fi, which accounts for your whole work history.