Topical Development Projects
Prime Minister Petteri Orpo’s Government Programme
The Government Programme of June 2023 includes initiatives related to pensions.
Pension reform
The aim was to stabilise long-term pension insurance contribution levels and significantly strengthen public finances over the long term through a rules-based stabilisation system. A working group was set up and it proposed, among other things, increasing the share of equity investments, limiting index adjustments during high inflation with a certain formula, and increasing funding. The Parliament adopted the Government proposal on 29 May in accordance with the working group’s proposals.
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How work income during disability pension affect pensions
Partial disability pensions and full disability pensions will be aligned with earnings from work so that working while on a pension is always beneficial. The Government Bill on the so-called flexible model was submitted to Parliament on 16 April 2026. The proposed changes are intended to enter into force at the beginning of 2028.
Abolition of certain benefits
The job alternation leave system and the adult education support system have been discontinued.
Evaluation of the pension system of self-employed persons
An evaluation of the need for reforming the YEL system was initiated. An investigator was appointed in 2024 to assess the matter and a report was released in December 2025. The Government agreed on reforming the Self-Employed Persons’ Pensions Act (YEL) scheme in April 2026.
Changes to Kela pensions
As part of the government’s savings goals, the minimum age for Kela pensions and certain other benefits has been raised from 16 to 18 years and the payment of Kela old-age and disability pensions to EU countries has been discontinued. The increase in the qualifying age came into effect at the beginning of 2025, and the payments to EU countries were discontinued as of the beginning of February 2025.
Overall reform of social security
An overall reform of social security written in the 2019 Government Programme was launched in the spring of 2020. A parliamentary committee that will prepare this reform was appointed in March 2020. Its term of office is from 23 March 2020 to 31 March 2027.
Research Professor Pasi Moisio (Finnish institute for health and welfare) chairs the committee. Mikko Kautto (Finnish Centre for Pensions) was the permanent expert member of the committee in its first term. The main committee was assisted during its first term of office by five divisions, of which three include representatives of the Finnish Centre for Pensions. The committee’s mid-term report was published in March 2023. The 2023 Government Programme’s entries that relate to, among other things, simplifying social security and developing one basic security benefit are based on this mid-term report.
During the second term of the committee, the expert member from the Finnish Centre for Pensions is Head of Department Susan Kuivalainen. The Ministry of Social Affairs and Health has also appointed an assessment and investigating group for the committee. The group’s task is to conduct evaluations and investigations, and to assist in the planning and coordination of more extensive investigations and research projects required for the committee’s work. The Finnish Centre for Pensions’ representative in this group is Senior Researcher Ilari Ilmakunnas.
Social security reform – Ministry of Social Affairs and Health (stm.fi)