The life expectancy coefficient for those born in 1962 has been confirmed
The life expectancy coefficient for 2024, that is, for those born in 1962, is 0.94692. The life expectancy coefficient reduces starting pensions by around 5.3 per cent.
The life expectancy coefficient is applied when your pension provider calculates how much pension you will get when you retire.
The life expectancy coefficient is determined separately for each age group at the age of 62. Your starting old-age pension is multiplied by the life expectancy coefficient confirmed for your age group, even if your pension starts later than at age 62, for example, at the retirement age of your age group.
If your pension, for example a disability pension or the partial old-age pension, begins before the life expectancy coefficient for your age group has been confirmed, the most recently confirmed life expectancy coefficient will be used when calculating your pension. Your pension will not be adjusted again with the life expectancy coefficient confirmed for your age group when you turn 62.
The impact of the life expectancy coefficient is included in the estimated pension amount stated on your pension record.
The life expectancy coefficient depends on how long people are expected to live
The life expectancy coefficient reduces monthly pensions based on how much the average life expectancy grows. When a person’s life expectancy increases, the same pension pot must last for a longer period.
The life expectancy coefficient was applied for the first time in 2009 at a value of 1 (1.00000). In 2009, those born in 1947 turned 62. Until 2023, the new life expectancy coefficient has always been smaller than the year before because life expectancy has continued to grow.
However, the value of the 2024 life expectancy coefficient grows compared to the coefficient of 2023. This is exceptional. It means that the life expectancy reduces the pension 0.3% less in 2024 than in 2023. The change is a result of life expectancy for 62-year-olds declining for a third year in a row. The decline has taken place since the beginning of the corona pandemic.
The Ministry of Social Affairs and Health confirms the life expectancy coefficient each year.
Example of how the life expectancy coefficient affects your pension
You were born in 1962. By the time your old-age pension begins, you have accrued a monthly earnings-related pension of 1,800 euros. The confirmed life expectancy coefficient for those born in 1962 is 0.94692. Your accrued pension is multiplied by the life expectancy coefficient of your age group.
€1,800 × 0.94692 = €1,704.46
Your gross pension is €1,704.46 This means that the life expectancy coefficient reduces your pension by around 5.3 per cent.