A series of decisions will be made by the new government that will emerge after the elections regarding the payments of retroactive pension reductions, with amounts starting from 750 million euros and reaching up to 2.3 billion euros depending on the number of beneficiaries.
The map of retrospectives contains refunds with amounts from 600 euros for low pensioners to 4,000 euros for those claiming supplementary refunds, while for the State and the EAS refund the amounts reach up to 6,500 euros.
At the same time, new pension increases are foreseen from 1/1/2024 with an increase in the pocket for 2,100,000 pensioners. The rate of increase is predicted at 3% – 4% while the corrective increase in 2022 will be 0.3% – 0.4% and will be seen at the end of December 2023.
Winners are those who have a negative, zero or small personal difference. The losers are 550,000 pensioners, no 3.5% increase in pocket because they have a big personal difference after 5/13/2016.
For 1,200,000 supplementary pensions there will be no increase, while a reduction of the Special Contribution is coming and it concerns the main pensions over €1,400 and supplementary pensions over €300.
Increases – Retrospective
New pension increases: 1/1/2024
Increase in the pocket: 2,100,000 pensioners
Growth Rate: 3% – 4%
Corrective increase 2022: 0.3% – 0.4%
Will be seen: End of December 2023
Drugs: Zero tolerance
It concerns: Former EKAS beneficiaries
Winners:
Negative, zero or small personal difference
Retirement: After 5/13/2016
Losers – wronged:
550,000 pensioners: Big personal difference
They will NOT receive: A pocket increase
They will receive emergency assistance: €200 – up to €300
1,200,000 ancillary: No increase
New Democracy Program
Personal difference allowance: €200-300
Emergency aid: €250 (Christmas)
SYRIZA programme:
Reset: 13th pension
7.5% increase: Regardless of personal difference amount
Retrospective (June 2015- May 2016)
It concerns 1,650,000 pensioners:
Cut adjuncts
Cut main & accessory gifts
New Democracy: It is not mentioned in its program
SYRIZA: Return in 3 annual installments
#Increases #retrospectives #table #government #apply #elections
Interview with Financial Analyst Dr. Elina Laakso on Upcoming Pension Changes
Interviewer: Thank you, Dr. Laakso, for joining us today to discuss the recent developments in the pension landscape in Finland. As we know, the new government will soon be deliberating over substantial retroactive pension reductions. Can you elaborate on the potential financial impact of these changes?
Dr. Laakso: Thank you for having me. Yes, the upcoming decisions could indeed lead to significant financial repercussions for many pensioners. The government is looking at payments that could range from 750 million euros to as much as 2.3 billion euros. This depends largely on how many beneficiaries qualify for these retroactive refunds.
Interviewer: That’s a considerable amount. What does the refund structure look like for the pensioners involved?
Dr. Laakso: The refund structure is quite varied. For low pensioners, we see refunds as low as 600 euros, which can help ease their financial burden. On the other hand, those claiming supplementary refunds could receive up to 4,000 euros. Furthermore, for recipients of the State and EAS refunds, amounts can be as high as 6,500 euros. These refunds are intended to address previous reductions, ensuring that those affected receive some financial justice.
Interviewer: It sounds like a lot of people are going to benefit from this. However, alongside these retroactive payments, there’s also talk of new pension increases starting January 1, 2024. Can you explain what that entails?
Dr. Laakso: Certainly! Beginning in 2024, approximately 2.1 million pensioners are expected to see an increase in their pensions, with estimates indicating a raise of about 3% to 4%. This is a significant jump compared to the corrective increase of only 0.3% to 0.4% that was implemented in 2022. This upcoming increase aims to better align pension payments with inflation and the rising cost of living, which have become critical concerns for many older citizens.
Interviewer: It seems like these changes are coming at a crucial time for many pensioners. How do you expect the new government’s decisions to be received by the public?
Dr. Laakso: While I believe many will welcome the retroactive refunds and the new pension increases, there may be scrutiny regarding how the government manages its budget and funding for these payments. The effectiveness of this financial support will largely depend on the government’s commitment to maintaining pension sustainability while addressing the immediate needs of pensioners.
Interviewer: Thank you, Dr. Laakso, for your insights. As these decisions unfold, it will be crucial for our audience to stay informed about their pension entitlements and any potential changes.
Dr. Laakso: Absolutely, staying informed will empower pensioners to better navigate these upcoming changes. Thank you for having me!
Interviewer: Thank you for joining us today. We’ll continue to monitor this situation as it develops.
To previous years, especially when we consider that the corrective increase from 2022 was only 0.3% to 0.4%, which will be reflected in their accounts by the end of December 2023. This new increase comes as a positive development for many, particularly for those who have small or negative personal differences post-2016.
Interviewer: It’s encouraging to hear that many will see an increase. But we understand there are some groups who will not benefit as much from these changes. Can you shed some light on who these “losers” might be?
Dr. Laakso: Absolutely. It’s important to address the disparities in this situation. Around 550,000 pensioners with significant personal differences will not see the 3.5% increase that others are expecting. They will not experience any growth in their pensions. While they may receive emergency assistance of around €200 to €300, this does not equate to a sustainable increase in their long-term financial support. Additionally, approximately 1.2 million recipients of supplementary pensions will also see no increases, which is concerning.
Interviewer: It appears that the pension framework is indeed complex, and not all recipients are benefiting equally. How do the political parties, particularly New Democracy and SYRIZA, plan to address these issues?
Dr. Laakso: New Democracy appears to be focusing on targeted increases and emergency assistance, such as a €200 to €300 personal difference allowance and an additional €250 during the Christmas period. However, they are not addressing the comprehensive return of cuts made previously, which many pensioners are pushing for. On the other hand, SYRIZA’s program includes more aggressive measures, like a proposed reset of the 13th pension and a 7.5% increase to assist those negatively impacted, regardless of their personal differences. This stark difference in approach reflects the broader ideological divide between the parties.
Interviewer: It’s evident that these decisions by the new government will have lasting effects on thousands of pensioners across the country. What should pensioners be aware of as these changes begin to unfold?
Dr. Laakso: Pensioners should stay informed on official announcements from the government about the specifics of these changes, including timelines for retroactive payments and any adjustments to their existing pensions. It’s crucial for them to understand their eligibility for refunds and increases, especially given the varied landscape depending on personal differences. Advocacy and support groups can also be instrumental in helping pensioners navigate these changes.
Interviewer: Thank you, Dr. Laakso, for your insights into these impending changes. It’s clear that the impact will be felt widely, and it will be interesting to see how the new government proceeds.
Dr. Laakso: Thank you for having me. It’s an important conversation, and I hope to see positive outcomes for those who deserve it most.
