Sweden pays new income pension complement to Finland
As of September 2021, Sweden starts to pay a new benefit, an income pension complement. The benefit may be granted to old-age pension recipients with a long working life and a small pension. The complement is paid also to Finland.
The Swedish Pensions Agency will send a decision of the income pension complement in August to all pension recipient who have turned 65 and qualify for the benefit. The income pension complement is paid out for the first time in September to the bank account of the qualifying pension recipients in connection with the payment of a Swedish pension, also to Finland and other EU/EEA countries and Switzerland.
At the beginning of 2021, the Swedish Pensions Agency sent an inquiry to all recipients of a Swedish income pension in Finland, that is, to around 52,000 persons. The inquiry was used to establish who is entitled to the new income pension complement. In the future, the right to the income pension complement is established automatically in connection with claiming an old-age pension from Sweden.
The amount of the income pension complement depends on the amount of the Swedish income pension and the number of years of work in Sweden.
The complement varies from SEK 0 to 600 per month. Qualifying for the income pension complement requires that the pensioner receives a combined income pension from Sweden and other EU/EEA countries and Switzerland to the gross amount of SEK 9,000 – 17,000 per month. In addition, the right to receive the pension and the pension amount also depend on for how many years the person has worked in Sweden.
New income pension complement may affect Kela benefits
In Sweden, pensions consist of different components. The income pension complement does not affect the other pension components; instead, it is paid on top of the Swedish statutory income pension.
In Finland, Kela estimates that the new income pension complement may affect some Kela benefits. These benefits include the national pension, the guarantee pension, housing allowance and basic income support.
If you are receiving one of these Kela beefits and you have been granted the new income pension complement, contact Kela. Report your changed pension amounts to the Finnish tax authorities.
For more information on the new pension benefit from Sweden, contact the customer servce of the Swedish Pensions Agency.