Voluntary YEL-Insurance

A self-employed person may take out a voluntary YEL-insurance even if his/her YEL income falls short of the minimum limit or the self-employed person is on an old-age pension in accordance with the Employee’s Pension Act.

Voluntary YEL-insurances differ from mandatory in the way that the pension insurance company may terminate the insurance policy if the self-employed person fails to meet the insurance payments. The self-employed person is also entitled to terminate the insurance policy at any time.

Tax deductions in respect of voluntary pension insurances are more limited than those in respect of mandatory pension insurances. It is recommendable contact the local tax office to find out about tax deductions for voluntary pension insurances. Voluntary pension insurances are not granted retroactively and the payments under the policy may not be postponed by application as the mandatory insurance payments may.