The Finnish government is set to launch an enquiry into the impact of means-testing for people receiving a partial early old-age pension (OVE), as part of its preparations for the General Benefits Act, which comes into force on 1 May 2026.

The new general social security benefit is designed to “prevent prolonged unemployment and social exclusion” and “to guarantee a basic level of income security during unemployment, simplify social security and promote incentives for work,” according to the Finnish Ministry of Social Affairs and Health.

It will be paid by Kela, the country’s social security authority, and will replace the labour market subsidy and basic unemployment allowance, which the same department currently pays.

However, the general benefit is means-tested, and financial assessments will include the receipt of OVE income.

Since the decision to receive the OVE cannot be suspended or discontinued, nor can it be reversed after a three-month cooling-off period, some recipients could find themselves unintentionally locked out of the new general benefit system because of their OVE income.

The Finnish parliament said its investigation into the effect of the OVE on means-testing aimed to “secure the livelihood of these individuals during unemployment, in a situation where the decision to transfer to partial early old-age pension was made without knowledge of the general benefit's effects on the level of the benefit”.

Finland is widely considered to have one of the most comprehensive welfare systems in Europe.

However, its system is changing, moving towards tighter rules on social security benefits.

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