SYT raises self-employed insurable income level

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MC Deli
Posts: 162
Joined: Thu Nov 08, 2007 4:10 pm
Location: Helsinki

SYT raises self-employed insurable income level

Post by MC Deli » Fri Nov 28, 2014 1:48 pm

The minimum insurable income level has risen from 8520 to 12326 for 2015. That's nearly 50%. Does that mean that minimum self employed pension contributions will increase by 50%?



SYT raises self-employed insurable income level

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betelgeuse
Posts: 4353
Joined: Thu Aug 29, 2013 1:24 am

Re: SYT raises self-employed insurable income level

Post by betelgeuse » Fri Nov 28, 2014 7:11 pm

MC Deli wrote:The minimum insurable income level has risen from 8520 to 12326 for 2015. That's nearly 50%. Does that mean that minimum self employed pension contributions will increase by 50%?
First let's separate SYT (unemployment fund) from pension contributions (pension insurance companies offering YEL). The minimum level of YEL (that again is tied to unemployement fund payments) does rise at the lowest level by 50%. However, do note that taking YEL is not mandatory if you are making/working less than the limit. You could drop out of YEL and then personally save for pensions as needed.

MC Deli
Posts: 162
Joined: Thu Nov 08, 2007 4:10 pm
Location: Helsinki

Re: SYT raises self-employed insurable income level

Post by MC Deli » Fri Nov 28, 2014 7:54 pm

...when you say "personally save for pensions" do you mean just save and invest or are you talking about private pension schemes?

I am looking at going up to the 12326 level, which means an annual premium of @2100 from the insurance company plus the 150(?) to YEL. I am interested in the options for e.g. pensions outside of the typical SYT/Ilmarinen...

betelgeuse
Posts: 4353
Joined: Thu Aug 29, 2013 1:24 am

Re: SYT raises self-employed insurable income level

Post by betelgeuse » Sat Nov 29, 2014 6:43 am

MC Deli wrote:...when you say "personally save for pensions" do you mean just save and invest or are you talking about private pension schemes?
Either. You choose.
MC Deli wrote: I am looking at going up to the 12326 level, which means an annual premium of @2100 from the insurance company plus the 150(?) to YEL.
You mean 150 to SYT? Legally speaking you do not get to choose. The rules are that you would need to estimate the salary of someone hired to do your job and set the YEL level according to that. However, in practice the YEL companies rely on the level you provide to them.
MC Deli wrote:I am interested in the options for e.g. pensions outside of the typical SYT/Ilmarinen...
Ilmarinen has to most YEL contracts but it's not that much more than, for example, Varma:

http://tinyurl.com/qeoup69


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