Pensions

Each EU country contributes to a person’s pension according to the amount of time they have worked in that country. Work in Estonia is added to the pensionable service from other countries if a person has worked in Estonia for at least one year. Estonia contributes to pensions for the time worked in Estonia.

Permanent residents of Estonia and persons living in Estonia under a temporary residence permit are entitled to receive a state old-age pension in Estonia if they have pensionable service in Estonia or in another EU member country for at least 15 years. Work in another EU member country or in Norway, Liechtenstein, Iceland or Switzerland is taken into account if the person has worked in one of those countries for at least one year and has the necessary documents to prove it (i.e. employment contract).

In addition to the state pension, the Estonian pension scheme also includes a funded pension scheme and a voluntary supplementary pension scheme.

Joining the funded pension scheme is optional for persons born before 1983 and obligatory for persons born later than 1983. A person pays 2% her/himself for the funded pension (deductible from the salary by the employer), and the state adds 4% from the social tax paid by the person.

Joining the supplementary funded pension scheme is voluntary. The amount of the contribution can be determined individually, as well as the period of receiving payments from the supplementary funded pension. Income tax from payments for the supplementary funded pension is refunded (see the chapter on taxation). It is also possible to continue payments to the supplementary funded pension from another country. And it is possible to continue in Estonia to make payments to supplementary pension funds that you have established elsewhere.

The retirement age in Estonia is currently 63 years for men and 60 years for women. The retirement age for women is gradually rising, and women born in 1953 or later will have the right to receive an old-age pension when they reach the age of 63.

More information on pensions can be found at Pensionikeskus

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