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How should a micro-entrepreneur compare pension insurance companies?

If you think or hear that there are no differences between pension insurance companies for micro-entrepreneurs, think again. We discussed this matter with entrepreneurs. Based on these discussions, I compiled a 10-point list of tips on how a micro-entrepreneur should compare pension insurance companies. Pick out the items from the list that are important to you.

1. Do you value smooth service and personalised support?

Ask how easy it is to deal with the pension insurance company. Is the micro-entrepreneur getting an understandable and personalised service and how quickly? A good measure of customer satisfaction and loyalty is the NPS (Net Promoter Score), which is widely used in different companies to indicate satisfaction with, for example, a company's customer- and online service. Ask specifically about the satisfaction of micro-entrepreneurs, not of all customers

2. Do you have employees?

If you employ people, even occasionally, compare your TyEL insurance with the amount in euros of client bonuses and administrative costs. Customer bonuses are annual TyEL contribution reductions granted by a pension insurance company. Administrative costs are part of the TyEL contribution that the pension insurance company uses to cover the costs of its operations. Ask for a comparison over 3–5 years to see what price the company is offering its new and existing customers. If you are hiring an employee from abroad or if you or your employees are going to work abroad, you should also compare the services offered by pension insurance companies for international work.

3. Do you ever need more time to pay your pension contributions?

Make sure you can change the payment time for YEL and TyEL contributions directly in the pension insurance company’s online service. If necessary, also clarify the terms of payment contracts in more detail.

4. Is your own or your employees’ ability to cope at work causing stress?

Compare how comprehensive and quickly pension insurance companies can provide you with the work ability service you need. What kind of support and tools does the company provide in order to identify and reduce risks to work ability? Timely and appropriate support is essential for the profitability and growth of your business.

5. A pension insurance company reviews your YEL income regularly. How customer-oriented is this review in practice?

Are you told at the outset about the different options and the information on which the income assessment and review are based? Can a self-employed person supplement his/her information and have his/her income decision revised? How good are the quality of the income decisions, or can they be changed on appeal?

6. Do you know how much pension you will receive?

Ask how easy it is to track the accrual of your pension. For example, can you track your pension accrual through your online bank? What kind of calculations can you do yourself for different types of pensions on the pension insurance company’s online service? How easy and quick is it to get a pension decision?

7. Are you interested in the ability to cope at work, your own pension issues or the investment market?

Take a look at the webinars offered by the employment pension insurance company. Do you feel you get useful information from them? If you are interested in networking with other micro-entrepreneurs, also check out the events organised by the companies.

8. Do you want someone to take care of practical TyEL and YEL matters for you?

First, find out how easy it is to grant authorisations. It's also worth comparing whether the pension insurance company supports the smooth running of your affairs, for example through the authorisation of an accountant or financial administration partner, and what practical solutions it offers.

9. Do you want to manage your affairs and those of your employees in one place?

You should take out YEL and TyEL insurance with the same pension insurance company. If you want to deal with other insurance, banking and financial matters within the same group of companies, you should find out which partners the pension insurance companies have.

10. Are you interested in knowing which pension insurance company other micro-entrepreneurs have chosen?

Ask the pension insurance company how many micro-entrepreneurs have chosen it as their pension insurance company. It says something about a pension insurance company if many micro-entrepreneurs continue to be its customers.

The price of YEL insurance is the same for all companies as is the discount for new entrepreneurs. The list of tips shows that companies differ in other elements of price and service. If some of the tips were of interest, there are several ways for you to find out the differences between companies: ask them for a written quote for TyEL insurance, look at their website, talk to a company expert, customer service representative or salesperson, or get someone else to do the comparison for you.

Ilmarinen, the employment pension insurance company I represent, has the most satisfied customers in the employment pension insurance sector, according to research. In our sector, micro-enterprises are most satisfied with the operations of Ilmarinen. I also dare to claim that we are doing well in every point on the list. Of course it's worth checking for yourself.

The choice of employment pension insurance company has one more effect. The pension insurance company where, as an entrepreneur or employee, you were last insured under YEL or TyEL before you retired, will pay you the total amount of your pension for the rest of your life.

Minna Hakkarainen
Director, Small and Microbusinesses and Partner Relations, Ilmarinen