24,000 people apply to leave second pillar pension fund

The protection money (Estonian: Katuseraha) component of the state budget has come in for some criticism, in particular from the Reform Party. Others say that it is simply the icing on the cake and not the main event (picture is illustrative). Source: (Marco Verch/Wikimedia Commons)

By Wednesday morning, approximately 24,000 people had applied to leave the second pension pillar after reforms came into effect on January 1.

Until now, joining the second pension pillar has been mandatory for people born before 1983.

Those who apply to leave the second pillar between January 1 and March 31 this year will get their money in one lump sum in September. Those who apply from April 1 to July 31 will get theirs on January 1 2022, and between August 1 and November 30, in May next year.

At the end of 2019, around 766,000 people had second-pillar pension funds. A survey found approximately 215,000 people, or 28 percent of the total, wanted to withdraw from the scond pillar if it became possible.

The first pillar of the Estonian pension scheme refers to the state pension; private pension schemes come under the third pillar.


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Editor: Helen Wright

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