Finland to end national pension payments abroad in 2025

The Finnish Parliament has approved a legislative change that will stop the payment of national pensions to recipients living outside Finland in EU and EEA countries, Switzerland, and the UK, effective from 1 February 2025. This decision aims to redu

By: helsinkitimes.fi

Dec 13 2024
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Finland to end national pensio

The Finnish Parliament has approved a legislative change that will stop the payment of national pensions to recipients living outside Finland in EU and EEA countries, Switzerland, and the UK, effective from 1 February 2025. This decision aims to reduce government spending and redefine the national pension as a minimum benefit, available only to residents of Finland.

The change will affect those currently receiving Finnish national old-age or disability pensions while living abroad.

However, survivors’ pensions, such as orphans’ and spouses’ pensions, will continue to be paid regardless of the recipient’s country of residence.

Ending national pension payments abroad will also affect recipients’ access to healthcare benefits. If the national pension is a person’s only Finnish benefit, Finland will no longer cover their medical treatment costs. Certificates for healthcare coverage, such as the S1 form or the European Health Insurance Card issued by Finland, will be revoked. Those receiving earnings-related pensions, however, will retain their healthcare benefits.

Care allowances for pensioners will also be discontinued for those who solely receive a national pension and live abroad. Similarly, child benefits, childcare allowances, and child increases tied to the national pension will cease.

For individuals residing in Finland who have previously lived or worked in EU and EEA countries, Switzerland, or the UK, their national pension will be recalculated as a minimum benefit. This may lead to changes in the pension amount, potentially impacting related benefits like housing allowances for pensioners or guarantee pensions.

People planning to move permanently from Finland to another EU or EEA country, Switzerland, or the UK will see their national pension payments end the month after their relocation. The same applies to those moving to non-EU or EEA countries, though exceptions exist for countries with a social security agreement with Finland.

Affected individuals do not need to contact Kela, the Finnish social insurance institution, as they will receive notifications about the discontinuation of their benefits. The reform is expected to impact nearly 20,000 pension recipients abroad, with most experiencing a reduction of less than €200 per month. For approximately 4,500 people, the decrease will exceed €200 monthly. Additionally, up to 32,000 people currently living in Finland may see their national pension recalculated due to prior residence or work abroad.

This legislative change aligns with a 2017 decision by the EU Court of Justice, which led Sweden to stop paying its guarantee pensions to residents abroad in 2023. The Finnish government anticipates annual savings of €38 million through this reform.