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Pension insurance – withdrawing and postponing voluntary pension

Read more about pension insurance for personal customers on this page:

Your voluntary pension insurance supplements your statutory pension and safeguards your income level when you retire. Once you have reached retirement age stated in the insurance terms and conditions, you can begin withdrawing your pension whenever it suits you. If you do not wish to begin withdrawing your pension immediately when you retire, you need to let us know that you are postponing your pension. You can postpone the payment of the pension if you have not yet retired. However, you must begin withdrawing your pension by the age specified in the insurance terms and conditions.

You can check the value performance of your pension insurance on the op.fi service and OP-mobile where you can also change the investment options connected to your insurance policy. In particular, before you start withdrawing your pension, you should check whether the risk level is suitable for you.

If you want to make changes to your pension plan, contact us before your pension payment period begins. For example, you can change the pension payment period, in other words how long you will withdraw your pension and the amount of monthly pension. The terms and conditions of your pension insurance determine which changes you can make.

How to begin withdrawing your pension

1. Check your pension plan

We will send you a letter showing your pension plan roughly one and a half months before the start of your pension. Your pension plan will show the planned start date of your pension. You can also find the same information by logging in to the op.fi service.

2. Notify us of a pension withdrawal

You can tell us the information required for the payment of your pension by logging in to the op.fi service with your OP user ID and by filling in a form (you cannot fill in the form with credentials of another bank) or by sending the pension payment notification you have received to us as a message on op.fi or by post. We will not send you a separate confirmation of receiving your notification.

3. Check the investment options and beneficiary

You can change the investment options for your pension savings and the beneficiary of death benefit in our digital services also during the withdrawal of your pension.

It's advisable to check the beneficiary of your pension insurance regularly as in the event of your death, the savings are paid to your appointed beneficiary. When your pension period begins, it's a good idea to check that your previous beneficiary clause is still up to date and change the beneficiary if necessary.

Read more about appointing a beneficiary >

You can make changes by logging in to:

  • the op.fi service with OP’s or another service provider’s user ID: Personal customers - Savings and investments - Saving through insurance
  • OP-mobile with OP’s user ID: Investments - Saving through insurance

How to defer the withdrawal of your pension

1. Check your pension plan

We will send you a letter showing your pension plan roughly one and a half months before the start of your pension. Your pension plan will show the planned start date of your pension. You can also find the same information by logging in to the op.fi service.

2. Notify us of the postponement of your pension

You can defer the start and end of your pension by one or two years from the beginning of your retirment age by logging in to the op.fi service with your OP’s user ID and filling in a form (you cannot fill in the form with another bank’s credentials). You can also send us the postponement of pension notification through our website or apps or by post.

The postponement will change the end of your pension and Death Cover by one or two years correspondingly. You can defer the start of your pension more than once if you want. We will not send you a separate confirmation of receiving your notification.

3. Check the investment options and beneficiary

You can change the investment options for your pension savings and the beneficiary of death benefit in our digital services.

It's advisable to check the beneficiary of your pension insurance regularly as in the event of your death, the savings are paid to your appointed beneficiary. When you postpone the payment of your pension, it's a good idea to check that your previous beneficiary clause is still up to date and change the beneficiary if necessary.

Read more about appointing a beneficiary >

You can make changes by logging in to:

  • the op.fi service with OP’s or another service provider’s user ID: Personal customers - Savings and investments - Saving through insurance
  • OP-mobile with OP’s user ID: Investments - Saving through insurance

Taxation of pensions – capital income or earned income?

Voluntary pensions are always taxable income. Pensions are taxed as earned income or capital income. Pension insurance can have parts taxed as taxable income and parts taxed as capital income. The taxation of your pension insurance savings depends on when you took out the pension insurance and when you paid the insurance premiums. The type of tax applying to your pension insurance is shown in the pension plan we sent or by logging in to the op.fi service.

If your pension insurance contains pension taxed as taxable income

Apply for a tax card for pension paid by OP Life Assurance Company if the pension is taxed as earned income. You can apply for a tax card from the Finnish Tax Administration in the MyTax service or by calling 029 497 000.

Before submitting the tax card, check that OP-Henkivakuutus Oy (OP Life Assurance Company Ltd) is listed as the payer of the pension on the card and that the card is issued specifically for the payment of pension.

To calculate your tax rate, you will need the notification of the start of your pension we sent you and information about your income, withholding tax and reductions from the start of the year. Ask the Finnish Tax Administration to deliver the tax card directly to OP Life Assurance Company or send it to us yourself as an attachment to a message on op.fi or by post to OP Life Assurance Company, P.O. Box 308, FI-00101 Helsinki.

If you fail to deliver the tax card for your pension, we will deduct taxes from your pension in accordance with the withholding tax rate, which is currently 40%.

If your pension insurance contains pension taxed as capital income

If your pension insurance is only taxed as capital income, you do not need to provide a tax card. In such cases, withholding tax will be automatically deducted from your pension at a rate of 30%.

How long can I postpone the start of my pension at a time?

You can postpone your pension by one or two years by submitting the form in the op.fi service (the form is currently only available with OP's user IDs). You can defer the start of your pension more than once if you want. However, you must begin withdrawing your pension by the age specified in the insurance terms and conditions.

If you would like to postpone your pension for some other period of time, you can message us through our website or apps. Include your insurance policy number and your preferred start and end date of pension in the message. When making the request, please note the minimum pension period stated in the terms and conditions of your pension insurance.

Select Savings and investments as the topic and specifier Saving through insurance, life and pension insurance.

If you log in with another bank's user ID, select the topic Vakuutusasiat (Insurance matters) and the specifier Vakuutussäästäminen, henki- ja eläkevakuutukset (Saving through insurance, Life and pension insurance).

Can I continue paying pension insurance premiums even if I postpone the start of my pension?

You can pay your insurance premiums until you start withdrawing your pension. By saving regularly, you will secure your income level during retirement.

Can I change the investment options of my pension insurance during retirement?

You can change the investment options of your pension insurance during retirement also. You can check the investment options and make changes by logging in to the op.fi service or OP-mobile. If you do not have an OP's user ID, you can log in to the op.fi service by using another service provider’s credentials.

When will the pension be paid to my account?

We will pay your first pension to your bank account within a month after you have shared the information needed for the payment with us. From then on, we will pay pension to your account on the first banking day of the month.

How much will I receive pension?

The amount of your pension will be reviewed monthly or annually depending on the terms and conditions of your pension insurance. If your pension is paid in equal instalments, your pension will be paid for as long as your insurance savings last. If your pension insurance includes unit-linked savings, the values of the investment instruments may rise or fall while you are withdrawing your pension. Therefore, the amount of your pension or the payment period may vary.

How can I notify you of the beginning of my pension withdrawal or its postponement if I don’t have OP’s user ID?

If you don’t have OP’s user ID, you can send us the pension payment notification you received by post.

OP Life Assurance Company Ltd

PO BOX 308, 00101 HELSINKI

You can also deliver the payment notification to your nearest OP branch.

You can also message us by logging in to the op.fi service using the credentials of another bank. Select the topic Vakuutusasiat (Insurance matters) and the specifier Vakuutussäästäminen, henki- ja eläkevakuutukset (Saving through insurance, Life and pension insurance).
 

Where can I send the withdrawal or postponement notification for pension in paper?

OP Life Assurance Company Ltd

PO BOX 308, 00101 HELSINKI

You can find the address also in the letter you received that contains your pension plan.

When is it possible to prematurely draw a pension from voluntary pension insurance?
Voluntary pension insurance can only be cancelled in circumstances determined in tax legislation and stated in the pension insurance terms and conditions. Such circumstances include the death of a spouse, divorce, long-term unemployment and incapacity for work. For more details, see the insurance terms and conditions.
What should I choose as the topic of the message on op.fi if my message concerns the pension insurance?

Select Savings and investments as the topic and specifier Saving through insurance, life and pension insurance.

How can I change the account number to which my pension is paid?

You can send the new account number to OP Life Assurance Company in writing by messaging us through our website or apps. In your message, include the policy number which the change of bank account number concerns.

Select Säästöt ja sijoitukset (Savings and investments) as the topic and the specifier Vakuutussäästäminen, henki- ja eläkevakuutukset (Saving through insurance, life and pension insurance). If you log in with another bank's user ID, select the topic Vakuutussäästäminen, henki- ja eläkevakuutukset (Saving through insurance, Life and pension insurance).

If you need assistance changing the bank account number, you can call OP Life Assurance Company's customer service on 010 253 6100.

Will postponing my pension affect the validity period of the Death Cover in my pension insurance?
When you postpone your pension, the end date of the Death Cover included in your pension insurance will also move forward. The information updated after the postponement will be available in the insurance summary, for example.