The old-age pension

A person who has become 63 years old and whose length of employment in Estonia is at least 15 years is entitled to receive the old-age pension.

The old-age pension consists of three parts:

The main or basic part, from 1 April 2017 it amounts to € 175,439
The pensionable service period component, which is calculated for employment until 31 December 1998
The insurance component – the personally calculated additional payment

The amount of the pensionable service period component depends on the length of employment, or the working years of the pensioner. Additional pension is calculated for the years deemed equal to employment, e.g. raising of children, compulsory military, studies at a university or vocational education institution, but also for the time the employee was temporarily incapable for work. The specific list is available in the State Pension Insurance Act. The monetary value of one year of employment in a monthly pension is €6,161.

The amount of the insurance component depends on how much social tax has been paid on the salary of the pensioner since 1 January 1999. The amount of the insurance component is calculated on the basis of the sum of annual factors of pension insurance. An annual factor shows the ratio of the social tax paid on the person’s salary during the calendar year to the social tax paid on the average salary of the state. If social tax is paid on the average salary, the annual factor is 1.0 and its monetary value in a monthly pension is €6,161.

To be entitled to receive the old-age pension, a person must be of the following age, depending on their year of birth:

Women Men
Year of birth Age Year of birth Age
1944 58 years, 6 months Born in 1938 and later 63 years
1945 59 years
1946 59 years, 6 months
1947 60 years
1948 60 years, 6 months
1949 61 years
1950 61 years, 6 months
1951 62 years
1952 62 years, 6 months
1953 63 years
1954 63 years, 3 months  1954 63 years, 3 months
1955 63 years, 6 months  1955 63 years, 6 months
1956 63 years, 9 months  1956 63 years, 9 months
1957 64 years  1957 64 years
1958 64 years, 3 months  1958 64 years, 3 months
1959 64 years, 6 months  1959 64 years, 6 months
1960 64 years, 9 months  1960 64 years, 9 months

By the year of birth 1953, the retirement ages of men and women have been raised to the same level, i.e. the retirement age of both women and men is 63 years.

For the persons who have been born since 1954, the retirement ages of men and women will rise together by three months for each year. For the men and women who were born in 1961, the retirement age will reach the age of 65.

• Early old-age pension
• Deferred old-age pension

A person is allowed to retire early, i.e. three years before the retirement age provided by the law. In such case, the amount of pension is decreased by 0.4% for each month retired early. The early old-age pension is established for life and it will not be recalculated later into old-age pension or old-age pension under favourable conditions. Early old-age pension is not paid to a person who works (except if the person has reached the general old-age pension age (63 years)).

In case of the deferred pension, the pension is increased by 0.9% for each month by which the person defers applying for his or her pension.

The state pensions are increased in line with the increasing cost of living and receipt of the social tax (increase of the salary fund). Once a year, the pensions are multiplied by the index that depends 20% on the annual increase of the consumer price index (cost of living) and 80% of the annual increase of the pension insurance part of the received social tax. The increased pension received as a result of the annual indexation will be paid from 1 April.

Read more on the state pension: Estonian National Social Insurance Board