- Estonian pension system
- I pillar
- II pillar
- III pillar
If the accrued sum has grown to be more than 50 times the rate of the national pension, a pension contract must be concluded with an insurer for lifetime payments from the insurance company.
As a rule, a person concludes a funded pension insurance contract with an insurer (insurance company) for payment of the amounts contributed to a pension fund, and after the conclusion of the contract the fund transfers the amount contributed by the person to the insurer selected by such person.
If the accrued sum is not sufficient (is less than 50 times the rate of the national pension), the insurer has the right to refuse to conclude the pension contract.
The payments are made on the basis of the pension contract as lifetime annuities, i.e. until the death of the person receiving the pension or the policyholder. The payments made until the death of the policyholder are calculated by the insurer, using the annuity formula.
The payments can be taken as monthly or quarterly payments. The sums may be in equal or increasing amounts and the payments can be received at least once in a quarter.