When you stop working as a self-employed person, you also need to terminate your YEL insurance. Remember before making a final decision that there are many options available to you.
When your work as an entrepreneur ends or begins to diminish significantly it is also time to end your YEL insurance. Terminate your insurance when your earned income falls below the lower limit for YEL. The lower limit changes annually. In 2019, it is EUR 7,799.37 (EUR 7,656.26 in 2018).
If you were born in 1956, the earliest you can retire is at the age of 63 years and 6 months. Your retirement age will vary according to the year you were born in (read more, how). Always remember to apply for a pension! Self-employed person’s pension is calculated based on your YEL income and any other pension you have earned during your career. You can calculate an estimate of your old-age pension on Ilmarinen’s online service.
If you wish to carry out a change of generation in your company, it is worth preparing for it well ahead of time. Hold negotiations with the next generation and give them time to prepare. Part-time work is often a good option in a change generation. When carrying out the transfer it is good to use a specialist's services. For example, your local ELY centre provides help in these matters.
You can also sell your company’s shares or its business. Sales provide additional earnings for the pension fund. It also pays to prepare well in advance for selling your business and to find someone to continue the company, for example, using the market places of different companies or business brokers. It is worth being careful in negotiations and taxation because how the deal is carried out has a considerable impact on what price the entrepreneur gets for the company in the end.
Your situation may also be quite the reverse. You may wish to continue working as an entrepreneur even after you begin to receive a pension. In that case, take note: the insurance you need to take out depends on the type of pension you receive.
If you receive disability or partial disability pension, part-time pension or partial old-age pension but continue working as an entrepreneur, you should keep your YEL insurance valid. If you, however, receive old-age pension, your YEL insurance ends automatically. This will take place whether you continue your work or establish a new company. In that case you can take out voluntary YEL insurance. It will enable you to accrue pension through your self-employment.
If you feel unable to continue working as usual, apply for vocational rehabilitation. One of the five rehabilitation options is sure to suit you. We provide financial support for each alternative.
If you do not work during parental leave, your YEL insurance may end. Upon returning to work you will need to apply for new YEL insurance.
If you work during your parental leave and your work input exceeds the YEL confirmed income lower limit (EUR 7,799.37 in 2019), the insurance should be maintained. In that case, the YEL confirmed income needs to be adjusted to match your work input.
Parental allowance is applied for from Kela. Parental allowance is determined based on the confirmed income under your YEL insurance.
If you are interrupting your work for a short period it is usually worth maintaining your YEL insurance. And changing your earned income under YEL or agreeing on a longer-than-usual term of payment. If, on the other hand, your work will be interrupted for a long period because you are studying or seriously ill, for example, it is usually best to terminate your YEL insurance.
If you apply for compensation from the self-employed person’s voluntary accident insurance, remember that the YEL insurance must be in force on the date of the accident or manifestation of the occupational disease.
Call us so that we can work out the best course of action for you. Our customer service can be contacted at +358 10 284 3714.