The government is removing an incentive that has encouraged people to save for their retirement.
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Private pension policies used to be far more popular than they are now, reports Hufvudstadsbladet on Monday.
Private pension policies were particularly popular in Finland in the 1990s as a supplement to statutory pensions. At their peak, some 700,000 Finns held such policies, according to Finance Finland.
A series of legislative changes since the early 2000s has gradually eroded the appeal of voluntary pension insurance, reports Hufvudstadsbladet. Today, that number has fallen to around 400,000.
The reason is a series of legal changes over the past two decades that have gradually made the financial product less attractive. From the start of 2027, it will become even less appealing. Until now, policyholders have been able to deduct annual contributions of up to 5,000 euros.
The financial services lobby warns that the planned removal of tax incentives next year may prove to be the final blow.
Hindsight 20/20
Just a few years ago, Finnish newspapers were full of upbeat stories about enthusiastic property investors, says Helsingin Sanomat.
Today, things are different. HS asked readers to share their experiences of buying an investment property.
One respondent was 36-year-old Pekka Astala, who lives in Vantaa’s Tikkurila district. In 2018, he bought a two-room apartment there for 187,000 euros. He now estimates its value has fallen to around 160,000 euros.
Eight years later, he says he considers the apartment a poor investment for small-scale investors like him, since it is not easily converted into cash.
Had he had a crystal ball, Astala says he would have sold the apartment in 2022, when the housing market was still in better shape.
Yle News’ All Points North podcast asked if it’s time to rent or buy after years of falling housing prices in Finland.
The hidden forces making food more expensive
Wintry week ahead
The coming week looks good for getting outdoors, reports Maaseudun Tulevaisuus, citing the Finnish Meteorological Institute (FMI).
Temperatures across the country will stay below zero, from a few degrees below freezing in the southwest to around -15 degrees Celsius in Lapland. It may feel colder at times because of the wind.
There should be some sunshine here and there each day, although it will be fairly cloudy overall. Light snowfall is expected in many places, but nothing too heavy.
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Crisp winter weather is in store for the ski holiday week. Image: Aleksi Lohtander / Yle