Justice chancellor challenges Estonia's new retirement age system

Justice Chancellor Ülle Madise is questioning a new retirement age system that could mean people in Estonia born in the same year start receiving a pension at different times.
Under the new system, which takes effect in 2027, Estonia's official retirement age will be set separately for each calendar year based on changes in life expectancy, affecting when people become eligible for an old-age pension.
As chancellor of justice, Madise questioned whether a calendar year-based system assigning different retirement ages based on birth month is constitutional. She cited Tallinn University (TLÜ) professor and demographer Lauri Leppik, who outlined the issue in the university's demography blog last year.
"People born in January have a retirement age one to three months lower than those born in December of the same year, unless the calculated retirement age for that particular calendar year happens to be a whole number of years," Leppik wrote, also explaining that the dividing line for different treatment would shift from year to year as well.
The difference could have a direct financial impact. Based on the average old-age pension at the time, Leppik noted that a one-month difference in retirement age would mean roughly one additional monthly pension payment, or €825. A two- or three-month difference, however, would mean a difference of €1,650 or €2,475, respectively.
Madise found that the Riigikogu's decision to link Estonia's retirement age to changes in the life expectancy of 65-year-olds is consistent with section 28, paragraph 2 of the Constitution.
The question, she said, is whether setting the age by calendar year is constitutional when it means people born in the same year can end up eligible for a pension at different ages.
Same year, different wait
For example, some people born in the same year could reach retirement age at 65 years and three months, while others would have to wait until 65 and six months.
"Someone may be very disappointed to learn that their retirement age has been pushed back by as much as three months compared with a coworker born in the same year," Madise said.
She questioned whether the state has convincing evidence to justify the difference — for example, evidence that people born in December 1962 have a two-month longer average life expectancy than those born between January and November of the same year.
The justice chancellor has asked the Riigikogu's Social Affairs Committee to promptly discuss the issue and explain why, starting next year, people born in the same year could face different retirement ages based on their month of birth.
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Editor: Aili Vahtla











