From unemployment to retirement

During unemployment, Kela pays out basic benefits. Earnings-related benefits are paid out by unemployment funds. Labour market subsidy is payable until the statutory retirement age, but the basic and earnings-related unemployment allowances can be paid for up to 500 days only.

Aging unemployed persons can, under certain conditions, avail themselves of a special pathway to retirement. This means that they can continue to draw unemployment allowance after the 500-day maximum eligibility period is over until they retire.

  • Persons born in 1950 are the first age group not covered by the unemployment pension scheme. The economic security of this and younger cohorts is guaranteed by means of the unemployment security system.
  • Recipients of unemployment allowance can apply for an old-age pension at age 62 if they are paid extended unemployment allowance.
  • Unemployment pensions are being phased out. In the earnings-related pension system, persons born before 1950 who meet the eligibility conditions for the unemployment pension qualify for an old-age pension at age 63 while suffering no penalty for early retirement. By contrast, Kela continues to grant unemployment pensions to long-term unemployed persons born before 1950 and between 63-63 years.

Updated 01/08/13