Kela warns Finns abroad they may soon lose national pension payments

Most of those who may be affected are women over the age of 65, while the majority of pension sums amount to less than 200 euros per month.

A letter in Finnish from the  Social Insurance Institution of Finland Kela to a customer saying their pension payments may be ending soon.
The letters are primarily being sent to Finns living in the EU and European Economic Area, the UK and Switzerland. Image: Kansaneläkelaitos
  • Yle News

Over the course of November and December, thousands of Finnish citizens living abroad will receive a letter from Kela, the Social Insurance Institution of Finland, explaining that their national pension payments could soon be cut off.

According to the agency's benefits manager, Päivi Kuivasniemi, the letter is meant to give customers advance warning that a law change on the matter is being prepared.

"So, if the pension stops on 1 February 2025, it won't come as a surprise," Kuivasniemi said.

Those potentially affected include recipients of old-age and disability pensions. However, the change would only affect national pension recipients.

The letters are primarily being sent to Finns living in the EU and European Economic Area, the UK and Switzerland. Most of the letter recipients are women over the age of 65, while the majority of the pension sums amount to less than 200 euros per month.

Finance Minister Riikka Purra (Finns) has said the move — a part of the government's austerity measures — would save the state 38 million euros.

While the individual pension sums are relatively small, some recipients rely on the extra income. For example, women who became housewives and receive low earnings-related pensions or don't receive one at all — will be particularly hard hit, according to Tina Strandberg, executive director of the Finland Society, an organisation for Finns living abroad.

"We've been contacted by people in various countries. Most recently we have spoken with Finns in Sweden who were very worried about the government proposal which is now being handled in Parliament," Strandberg explained.

She said her organisation hopes that policymakers will take more time to finalise their decisions about the matter.

According to Strandberg, the group suggests that lawmakers examine what kinds of impacts cutting off the pension payments would have.

"And the schedule for processing the proposal should be extended," she said.

If the proposal is approved, it would affect around 16,600 Finnish citizens in Sweden, more than 2,300 in Estonia, about 1,500 in Germany and some 540 people in Spain.

However, due to international social security agreements, Finland would continue to pay pension recipients to Finns living in Chile, Canada, the US, Australia and Israel, even if the law goes into effect.

If the bill is passed into law, those affected could have the payments reinstated by moving back to Finland.

Edited to add how much the government expects the proposed austerity measure will save, according to Finance Minister Riikka Purra (Finns).

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