Estonian pension funds are among worst in OECD

TALLINN - According to a recent report drawn up by the Organization for Economic Cooperation and Development (OECD), in 2016 the real investment rate of return of Estonian pension funds was 1 percent, which places Estonia sixth from the bottom among OECD countries and 16th from the bottom among the 66 countries analyzed, the daily Postimees reports.

If a longer period is observed, the situation is even worse. Based on the average annual returns in 2006-2016, Estonia placed last among OECD member states. The nominal 10-year-average annual return of Estonian pension funds was 1.1 percent and real return -1.8 percent.

Of the countries analyzed in the report that do not belong to OECD, only a handful had bigger negative returns than Estonia -- Nigeria, Egypt, Malawi, Mauritius and Tanzania.

When looking at the real five-year average annual return of pension providers, Estonia placed seventh from the bottom with 3.2 percent.