Opposition MP: Dismantling Estonia's pension system very bad idea

  • 2020-10-20
  • BNS/TBT Staff

TALLINN – Reform Party MP Andres Sutt, member of the parliamentary finance committee, has described the implementation of the law on the reform of mandatory funded pensions as dismantling of the Estonian pension system and as such a very bad idea. 

"The Supreme Court has made its decision and the constitutional dispute over the second pillar is thus over. The decision of the court must be respected, and the president already promulgated the law," the opposition MP said.

"However, I still hold the position that dismantling our pension system is a very bad idea. Monetary and financial problems will continue in the future. The Estonian population is ageing, and without mandatory funded pensions the Estonian pension system is not able to ensure people's coping in retirement age," Sutt said according to spokespeople for the Reform Party.

He said that as a result, pensions will be smaller in the future and the at-poverty risk of pensioners will grow, not decrease in the future. Relinquishing mandatory funded pensions will mean in the future either a steep increase in social tax or many times bigger immigration.

"In this way, a tax increase will await our children and grandchildren, and ever increasing retirement age coupled with smaller pensions will await us," he said.

"With the abolition of mandatory funded pensions a deep crack has been created in the trustworthiness of the state pension system. Can I trust my state is a justified question. I will continue to accumulate money in both the second and the third pillar, and I advise everybody who cares for their children and genuine freedom in their old age to do it," Sutt said.