Bank: 250,000 left Estonia's second pillar pension scheme in 4 years
Around a quarter of a million people have left the second pension pillar of the Estonian pension system in the past four years, Luminor Bank reported.
Vahur Madisson, pensions fund manager at Luminor, said statistics show the main demographic who have left the second pillar, taking with them the funds they had accumulated up to that point, is average wage earners in the 35 to 55 age group.
Despite this, in terms of age and income, this demographic is the target group for the second pension pillar, as such people still have enough working years ahead, while their future pension now depends largely on self-financing, if they leave.
The national pensions system is organized into three "pillars," the first being the state pension. The second refers to employer-employee contributions, membership of which was mandatory for around a decade from 2010 for most wage earners but is now optional. The third pillar concerns private pension schemes.
--
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Aleksander Krjukov, Andrew Whyte
