Number of people leaving second pension pillar up 5,000 from summer period

Money. Source: Siim Lõvi /ERR

The number of people that want to trigger a second pension pillar payout is up by 5,000 from the summer, applications can be issued until the end of November.

When the option of issuing applications to withdraw money from the second pension pillar opened in January, more than 149,000 people applied. From April, another period opened in April, which saw 12,369 people apply to withdraw their money from the pension system.

The third period, opened in August, has seen 17,245 people apply. Applications can be issued until November 30 and the payouts will take place in May next year.

For those that applied for a payout by the end of June, can withdraw their application until the end of November.

Once someone has exited the second pillar, regardless of whether they only stopped contributing to it or withdrew already accrued money from it, they may rejoin the pillar after a period of ten years.

When withdrawing the money when exiting the pillar, it must be taken into account that the payment will be made in a lump sum and that all the money that the person has accrued in their second pillar will be paid out. The money will be subject to 20 percent tax, however the calculation of their tax-exempt income will not be affected by the second pillar payout.


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Editor: Kristjan Kallaste

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