Finland has said it will stop supplementing small pensions for recipients living abroad.
The announcement by Finance Minister Riikka Purra (Finns) that Finland will stop paying so-called national pensions to residents outside of Finland is causing a stir, particularly in Sweden, where most of these recipients live.
The national pension tops up earnings-related pensions that fall under a minimum level.
The move — part of the government's austerity measures — will save the state 38 million euros, according to Purra.
Finland pays out a national pension to some 25,000 people outside of Finland, the majority of whom — 18,000 — live in Sweden.
The government said it is following Sweden's lead on the matter. Early last year, Sweden decided to stop paying its guarantee pensions, designed to offer a minimum level of social security, to people living outside of the country.
Now Finland is doing the same, much to the ire of Finns living in Sweden, according to the Finnish-language unit of Radio Sweden.
The average national pension top-up for Finnish pensioners in Sweden is around 130 euros a month.
Retirees can claim supplemental pension benefits if their earnings-related pensions fall below 1,601 euros per month for a single person or 1,435 euros a month for those cohabitating.
The Ministry of Social Affairs and Health, however, still needs to iron out the details before changes come into force at the turn of the year.
All Points North assesses the government's latest round of austerity measures and asks what the spending cuts and tax rises might mean for you. Listen to the episode via this embedded player, on Yle Areena, via Apple, Spotify or wherever you get your podcasts.
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