The Finnish Government is circulating a proposal to end the payment of national pensions to recipients living outside Finland by the beginning of 2025. If adopted, this change will affect old-age and disability pensions paid to individuals residing in EU or EEA countries, Switzerland, and Great Britain. This proposal, however, will not impact survivors’ pensions, child increases, front-veterans’ supplements, or earnings-related pensions.
The proposal is part of the broader fiscal plan for 2025–2028, aiming to save approximately EUR 38 million annually. Currently, the national pension serves as a basic benefit for individuals with minimal or no earnings-related pensions.
The proposed amendment intends to classify the national pension as a "minimum benefit" under EU legislation. This classification means the pension can only be paid to residents within Finland, aligning it with the existing guarantee pension which Kela also administers.
Should the proposal be enacted, from January 1, 2025, Kela will cease paying national pensions to recipients living in EU or EEA countries, Switzerland, and Great Britain. However, recipients in countries with bilateral social security agreements with Finland—such as Australia, Chile, Israel, Canada, and the United States—will not be affected and will continue to receive their pensions.
Pensioners who move permanently abroad after the proposed law comes into effect will see their national pensions discontinued from the first of the month following their move. Temporary stays abroad will not affect pension payments.
If the proposal is accepted, it may necessitate a review of national pensions currently being paid to residents in Finland who have previously lived or worked in other EU or EEA countries, Switzerland, or Great Britain. This review would adjust the pensions to comply with the new "minimum benefit" classification.
The proposal is currently open for public comment and may undergo revisions before being submitted to Parliament. Kela will continue to provide updates and further details as the situation develops, with more information expected this autumn.
HT
