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Estonia has highest average monthly retirement pension in Baltics

2002

207,200 people have joined funded pension system
100,000 people have joined funded pension
60,000 people have joined funded pension system
Estonian CSD launched pension index
The Financial Supervisory Authority hopes to register pension funds before the end of May 2002
2+4 funded pension? is it something for me?

The state pension reform communication campaign started

04.03.02

The state-initiated pension reform communication campaign starts today. The objective of the campaign that will last for four months is to inform the public about the contents of the reform and influence people to consciously save for their retirement age.

“Our task is to provide detailed information so that people would knowingly make a choice whether to subscribe to the funded pension and choose a pension fund that would meet their expectations,” said Veiko Tali, Head of the Financial Services Department of the Ministry of Finance. “It is important to explain to people that it is a long-term process, the effects of which will show after years,” Tali added.

The communication channels used in the campaign that has started this week include television, radio, printed media and outdoor media, the Internet and printed materials. As a part of the campaign, five Rahakompass seminars will be organised in April – in Kuressaare, Rakvere, Pärnu, Tartu and Narva. Special informative television and radio programme series will also be launched under the campaign.

The author and the performer of the campaign is Hill & Knowlton Konsortsium, which in addition to the project co-ordinator, PR company Hill & Knowlton Eesti AS involves also the advertising agency Adell Saatchi & Saatchi and the media agency Media House.

The new pension system of Estonia consists of three pillars: the first pillar – the state pension, the second pillar – the funded pension, and the third pillar – the supplementary funded pension. The second pillar or the funded pension is the main support to the state pension, providing additional income in retirement age.

The funded pension is based on preliminary financing – a working person himself or herself saves for his or her retirement period by paying two percent or his or her gross salary to a pension fund. In addition to the two percent paid by the person himself or herself, the state will add another four percent out of the person’s current social tax.

Subscription to the funded pension is voluntary for the persons born before 1983. For those entering the labour market, i.e. born in 1983 and later, subscription to the funded pension is mandatory.