Topical issues

207 000 self-employed persons were insured under the Self-employed Persons’ Pensions Act in 2018. Every fourth of them set their confirmed income, which forms the basis of their future pension and other social insurance, at or near the minimum requirement. Of the newly self-employed, two out of five underinsured themselves, statistics of the Finnish Centre …

The generous German pension reforms have raised extensive discussions about the sustainability of the country’s pension system. Researcher Dina Frommert from Deutsche Rentenversicherung Bund explains the content of the recent reforms and the results of the life cycle research at our research seminar on 23 May.

As of the end of March, Estonia has granted only online A1 certificates for workers posted from Estonia to other EU countries. These certificates are different from the previous ones in that they lack the signature and stamp of the granting institution.

Shortages in earnings-related pension insurance exist in all fields. Yet the construction field shows more insurance irregularities than other fields. This is evident from the customer classification made by the Grey Economy Information Unit of the Tax Administration.

Low birth rates pose a threat for the earnings-related pension system in Finland. This is evident in the recently published long-term projections of the Finnish Centre for Pensions. The full report will be published in English later this year.

In 2018, nearly 1,300 persons retired on an earnings-related disability pension (up by 7% since 2017). The growth was evident in particular in the number of granted disability pensions due to depression. Two out of three new retirees on a disability pension due to depression were women. Three out of five of them were aged …

The monthly pension of more than half of the pensioners is below 1,500 euros. Seven per cent get a monthly pension that is higher than 3,000 euros. One in three over-16-year-old in Finland is a pensioner.

The updated pension calculator takes into account the general growth in earnings in Finland, that is, the change in the average earnings of wage earners. Taking into account the growth in earnings makes the result more realistic. The pension calculator is available at Työeläke.fi, a website for the general public.

As of April, the conditions for getting Kela benefits will change for persons coming to work in Finland or going abroad from Finland to work in another country. The change in law also affects posted employees and self-employed persons who go abroad to work in a third country.

The pension financing outlook is stable for the next few decades. The insurance contribution under the Employees Pensions Act (TyEL contribution) can be kept below 25 per cent of the wages until the 2050s. However, in the long run, the low birth rates will cause a pronounced pressure to raise the contribution rate. The required …