Finnish pension cuts to have little impact on people in Estonia

The Finnish government's decision to stop paying national pensions abroad does not concern the majority of Estonians who have worked in Finland or the Finns who came here for retirement, said Sanna-Leena Immanen, an advisor at Finland's embassy in Tallinn.
The Finnish government is making budget cuts and its plan was published on Tuesday. One change is that the national pension will no longer be paid to those living abroad.
Immanen told ERR the Finnish pension system has several types of pensions, and the national pension is similar to a social security benefit. A person can receive a national pension if their occupational pension is not sufficient.
"The national pension is currently paid to people living in Finland who are permanent residents. If a person moves abroad, they will receive this national pension abroad for a maximum of one year, and from then on he or she will be a resident of another country, and the national pension, which is similar to the minimum income, will no longer extend abroad," she explained.
Immanen said, under the new plans, payment of the national pension will stop as soon as a person moves abroad. Rules around pensions earned from working will not change.
"If an Estonian is or has been working in Finland and is paid a pension on the basis of their earnings, they will not be affected by this change at all," she confirmed.
Finnish Minister of Finance Riikka Purra said the cut will save €38 million and primarily affect Finns living in Sweden. It is not yet known when it will be implemented.
Thousands of Estonians have worked in Finland, and for decades the country was the most popular place for Estonians to seek work abroad.
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Editor: Karin Koppel, Helen Wright