Retirement age set to increase

  • 2010-03-31
  • By Ella Karapetyan

TALLINN - During the program ‘Reporteritund,’ on Vikerraadio, Prime Minister Andrus Ansip said that the gradual increase of the retirement age, beginning in 2017, will ensure a pension increase for current and future pensioners. Otherwise, according to the head of government, taxes should be raised, pensions decreased or masses of migrant workers brought to Estonia to be able to pay out pensions.

“If the retirement age is not increased, the state will in the future lose 2 - 3 billion kroons (192.3 million euros) in taxes per year,” said Ansip. He noted that in Estonia, retirement pensions have doubled during the past five years. “In the future, we must also ensure a retirement pension of at least 40 percent of the average wage to pensioners,” Ansip said.
According to the draft legislation sent to the Riigikogu, the retirement age would be gradually increased by three months a year, so that by 2026, it will be 65 years for both men and women, which is the most common retirement age in the European Union countries. Currently, the retirement age for men is 63 years and for women, 60 years and 6 months. By 2016, the retirement age for women will also be increased to 63 years.

The increase in the retirement age in said form would mainly affect the people who are currently under 50. The people who are now from 50 - 60 years old, whose retirement age will arrive in 2017 - 2026, will remain in the transition period. Those older than 56 will retire according to the currently applicable rules.

This retirement age would be higher than the general retirement ages of the member states of the European Union, except for in Ireland (66 years). France, which has a retirement age set at 60, has also decided to increase the retirement age to 65. In most European countries, an increase in the retirement age has either been agreed upon or is being planned.