Going on pension

State pension – I pillar

• Old-age pension

  • Under favourable terms for someone who has raised a disabled child, or three or more children, or for persons who have been unlawfully repressed.
  • Flexible retirement pension
  • Early retirement old-age pension (valid from 1 January 2021 to 31 December 2025), to be replaced by a flexible old-age pension
  • Deferred old-age pension

• Survivor’s Pension

• Pension for Incapacity for Work (will no longer apply, will gradually be replaced between 1.7.2016 and 1.1.2022 by a work capability allowance)

• National Pension

• Superannuated Pension

• Pension for workers under Conditions Hazardous to Health

• Pension under Favourable Conditions for Different Professions

  • Police officer’s pension (for those appointed to office until 31.12.2019)
  • Prosecutor’s working ability benefit (for those appointed to office until 31.12.2019)
  • Military Service Pension (for those appointed to office until 31.12.2019)
  • Judge’s Pension (for those appointed to office until 1.07.2013)
  • National Audit Pension (for those appointed to office until 1.1.2013)
  • Chancellor of Justice’s Pension (for those appointed to office until 1.1.2013)
  • Riigikogu Member’s Pension (until the X composition in 2003)
  • President’s Pension

Mandatory funded pension – II pillar

• Lifetime pension
• Fixed-term pension
• One-time disbursement
• Payments before reaching pensionable age

Supplementary funded pension – III pillar

You can read more about the Third Pillar payments on the Pension Centre website.

As of 1 January 2017, the retirement age for the First Pillar began to gradually increase and will reach the age of 65 by 2026. The retirement age increases according to the year of birth.

Year of birth	Retirement age
1953	63 years
1954	63 years 3 months
1955	63 years 6 months
1956	63 years 9 months
1957	64 years
1958	64 years 3 months
1959	64 years 6 months
1960	64 years 9 months
1961 and later	65 years

You do not have to start receiving your pension as soon as you reach retirement age. You can do so later at any time and meanwhile your pension will keep increasing.

If currently, it is possible to retire up to three years before retirement age, then as of 2021 it will be possible to apply for your First Pillar pension up to five years before retirement age.

As of 2027, the retirement age will depend on the on the average life expectancy and will increase by a maximum of three months per year.

Until 2027 it is possible to retire from the Second pillar if you are at least 60 years old. From 2027, the old-age pension age will depend on the average life expectancy, and it is possible to retire on the Second pillar pension up to 5 years before reaching the old-age pension age.

The so-called retirement age of the Third Pillar is 55 years for those who have shares in a voluntary pension fund acquired, which were acquired before 2021, or whose supplementary funded pension insurance contract has been entered into before 2021. For those who start accruing a pension in the Third Pillar in 2021 or later, the retirement age will be the old-age pension age minus five years. Income tax benefits apply to the payments made after your Third Pillar retirement age. Tax benefits also apply to those, regardless of age, who have become completely and permanently incapable of working.

On the Pensioniplaan.ee website, you will find information about the actual and predictable old-age retirement age for people born in different years.

If you have any questions, please call the Social Insurance Board’s helpline at 612 1360 or send an email to [email protected].

The e-notice of the State Pension Insurance Registry and the Pension calculator provides information about the amount of pension rights you have accumulated so far in the First Pillar and pension assets in Second and Third Pillar.

If you are currently unable to log onto the state portal, you can see the theoretical size of your First, Second and Third Pillar pensions on the calculator at pensionplaan.ee.

The Pensioniplaan.ee website will also provide information on how the amount of your pension is calculated.

You can also see the status of your Second and Third Pillar pension assets on the self-service environment by clicking on ’Enter Your Account’ the Pension Centre website or through your internet bank. If you have concluded a supplementary funded pension insurance contract to accrue money in the Third Pillar, contact your insurance company for additional information.

If you have any questions, please call the Social Insurance Board’s helpline at 612 1360 or send an email to [email protected].

As of 2021, you can create your own personal pension plan in the First Pillar. You can start withdrawing your pension up to five years before retirement age or at any time after retirement age. You can also have your pension suspended or take half your pension, even month by month. If you postpone your pension, suspend payments or take only half of your pension at a time, your future pension will increase.

You can read more about the personal pension plan on the pensionplaan.ee website.

If you have any questions, please call the Social Insurance Board’s helpline at 612 1360 or send an email to [email protected].

Join by yourself or with your team for a free practical information session on pension, titled „How to shape your pension for the future?“

The pension advisers of the Ministry of Social Affairs conduct free information sessions on pension, funded by the European Social Fund and co-financed by the state.

We will talk about what decisions to make today to ensure you have the most carefree retirement possible. During the information session we will give an overview of the Estonian pension system from the perspective of all three pension pillars. We explain the main changes affecting pension. We share practical tips on where and how to find your personal pension information and how your pension is calculated.

The new service is particularly suited to working-age people or young people who are already contributing to their pension more or less consciously. The information sessions can take place online or on-site and the number of participants is not limited. Listeners are generally of different ages, so the information session is structured in such a way that important information is delivered to different target groups at the same time during the same session. If you are interested, you can send an email to [email protected].

Data and documents proving employment, study, military service or the raising of children only need to be provided by those, who have worked before 1999. From then on, the calculation of one’s pension status has been based on social taxes. Social tax data is available in state registers and it is not necessary to submit any additional documents as proof.

If the employment record book and/or documents necessary for proving the length of employment have been submitted to the Social Insurance Board, you will find the information related to your pension status on state portal e-service ‘Viewing the e-notice of the State Pension Insurance Registry’.

You can also see which periods of employment are already included in the information system of the Social Insurance Board on the state portal e-service Pension calculator, by clicking on the link ‘statement of pensionable service’.

If you have any questions, please call the Social Insurance Board’s helpline at 612 1360 or send an email to [email protected].

Those who have worked before 1999 can submit their employment record book to the Social Insurance Board. You don’t have to wait until retirement age to do so.

You can forward your employment record book and other documents for determining your pension to the Social Insurance Board

• by communicating online in the self-service portal of the Social Insurance Board
• by mail to the Social Insurance Board at Paldiski mnt 80, 15092 Tallinn
• personally at a customer service office of the Social Insurance Board

If you send the documents by e-mail or post, include a statement of transfer with the employment record book or include the following details with the letter:

• name
• personal ID code
• address
• e-mail address
• phone number.

If you send the employment record book by mail, please indicate whether you want the social security office to keep it or from which customer service you want to get it back. You can find the application for handing over the employment record book (in Estonian) on the Social Insurance Board website.

You can read more about the storage of the employment record book on the Social Insurance Board website.

If you have any questions, please call the Social Insurance Board’s helpline at 612 1360 or send an email to [email protected].

In order to apply for a First Pillar pension, an application and the documents necessary for receiving a pension must be submitted to the Social Insurance Board.

You can submit an application

• digitally signed to: [email protected]
• by mail (Paldiski mnt 80, 15092 Tallinn)
• at the customer service of the Social Insurance Board.

You can submit the documents necessary for determining the pension

• in the self service portal of Social Insurance Board
• by mail (Paldiski mnt 80, 15092 Tallinn)
• at the customer service of the Social Insurance Board.

You will find the application form (in Estonian) and list of documents necessary for determine the pension on the Social Insurance Board website.

More information about applying for a pension is available on the Social Insurance Board website.

If you have any questions, please call the Social Insurance Board’s helpline at 612 1360 or send an email to [email protected].

In order to receive Second Pillar payments and Third Pillar payments, an application to conclude an insurance contract must be submitted to an insurance company and to receive payments from the pension fund or pension investment account application must be made to the bank or the Pension Centre.

The Social Insurance Board will send your pension certificate to you by mail within 10 working days of the decision being made to pay out your pension.

More information about the retirement certificate can you find on the website of the Social Insurance Board.

If you have any questions, please call the Social Insurance Board’s helpline at 612 1360 or send an email to [email protected].

Pensions are paid by the Social Insurance Board according to your wishes:

• to your bank account in Estonia;
• to the bank account of another person of your choice, if you file a digitally signed application or you file an application with the customer service department of the Social Insurance Board or you submit a notarized application;
• by mail as a home delivery (pension, disability social benefit) at your expense;
• to your bank account abroad at your expense.

The pension/allowance will be delivered to your home by mail free of charge if your mobility is limited or you live in a sparsely populated area and banking services are difficult to access. To do this, submit an explanatory application to the Social Insurance Board stating the reasons for requesting home delivery. Home delivery at your expense can also be authorised for other reasons.

If your pension was delivered, but you were not at home, the mailman will take the money back. If you have not taken out your pension for two months, the Social Insurance Board will suspend the payment of your pension. An application must be submitted to continue the payment of your pension. Thereafter, the pension will be paid starting as of the suspension.

The application forms (in Estonian) are available on the Social Insurance Board website.

Applications can be submitted:

• digitally signed to the e-mail address: [email protected]
• by mail to: Paldiski mnt 80, 15092 Tallinn or
• at the customer service of the Social Insurance Board.

If your pension is delivered to your home, but are in the hospital, you can authorise someone to withdraw your pension if necessary. The authorisation should be certified by the head of the medical institution (chief physician) and the certified authorisation will be valid for the withdrawal of any pension not received within six months

Second and Third Pillar pensions will be deposited in your bank account by the Pension Centre or the insurance companies.

If you want to have your pension deposited in an account other than the one indicated in the original application, you change it

• in the self service portal of Social Insurance Board
• by sending an application by email to: [email protected].

If it’s being deposited to someone else’s account, you can make a change by

• sending a digitally signed application by email to [email protected]
• sending a notarised application by mail to Paldiski mnt 80, 15092 Tallinn
• at the customer service of the Social Insurance Board.

The application form (in Estonian) is available on the Social Insurance Board website.

In the case of Second and Third Pillar pensions, you can change your current account to which your pension is deposited at the bank or on the pensionikeskus.ee portal ‘Log in to your account.’ If your pension is paid out by an insurance company, you must contact your insurance company to change your bank account.

All First Pillar pensions are paid on the 5th of each month. If this date falls on a weekend or a public holiday, the Social Insurance Board will pay the pension on the last working day preceding the 5th.

If you live in a Member State of the European Union, Norway, Iceland, Liechtenstein, Switzerland, Canada or Australia, the Social Insurance Board usually pays your Estonian pension once a month on the 5th day of the current month. If you wish, the pension can also be paid quarterly or semi-annually or once in year. To do so, notify the Social Insurance Board by e-mail to [email protected], by mail to Paldiski mnt 80, 15092 Tallinn or by fax to +372 640 8155.

If you live in Moldova, Ukraine or the Russian Federation, your Estonian pension is paid quarterly through the responsible authority of the respective country. When moving to one of these countries, in order to continue receiving your Estonian pension, you must contact the responsible authority of your place of residence, which will draw up and transmits the documents necessary for the continuation of pension payments to the Estonian Social Insurance Board.

If you move elsewhere, the Social Insurance Board will continue to pay you a pension in the normal way if you’ve had at least 15 years of pensionable service in Estonia.

If your Second or Third Pillar pension is paid by an insurance company, the payment date is specified in the terms and conditions of your insurance contract.

Pillar II pensions are paid by the pension fund from the 15th to the 20th, either monthly, quarterly or in the last month of the year, depending on the pension payment schedule you have chosen.

Pillar III pensions are paid by the pension fund in accordance with the fund rules and applications you have submitted.

First Pillar pensions are indexed every year. The indexing, i.e. pension increase, depends on the changes in prices and wages. If the price or wage change is negative, pensions are not indexed. In addition to the annual indexing, First Pillar pensions may also increase if the Riigikogu decides on extraordinary pension increases.

In addition to indexing, pensions will increase on April 1st for pensioners who have worked in the meantime. For pensioners who worked and received income subject to social tax last year, an additional insurance contribution for the previous year will be calculated. As a result of indexing, pensions will increase, and therefore, you should review the use of your income tax exemption every year in April.

You can check on the amount of your First Pillar pension on the eesti.ee website.

You can read more about the indexing of your Frist Pillar pension on the Social Insurance Board website.

If you have any questions, call the Social Insurance Board helpline at 612 1360 or send an email to [email protected].

The increase in Second Pillar payments and Third Pillar payments depends on the method of payment you have chosen and the type of contract you have concluded. If a contract with investment risk has been concluded, and if the payments are made from a pension fund, the amount of the payment may increase or decrease depending on the return on the investment. In the case of a guaranteed interest contract, the amount of the pension will not change.

The state pays a higher First or Second Pillar pension to a child’s parent. It is also possible for a person who has raised three or more children or disabled children to retire 1–5 years earlier.

Each parent can exercise one of these rights at a time. The parents must agree in writing on who will exercise which right and send the relevant statements related to applying for or waiving the pension supplement for raising a child by email to [email protected]. The statement form (in Estonian) is available on the Social Insurance Board website.

If agreement cannot be reached, the Social Insurance Board will divide the rights equally between both parents. You can read more about the parental pension and applying for it on the Social Insurance Board website.

If you have any questions, call the Social Insurance Board helpline at 612 1360 or send an email to [email protected].

The state makes additional contributions to the Second Pillar of those who are required to contribute to a mandatory funded pension on the basis of the Funded Pensions Act and who are raising a child three years or younger who was born on or after 1 January. Entitlement to the supplementary contribution arises when the child is born. The state pays 4% of the average income for one calendar month subject to social tax in Estonia into the Second Pillar. The contributions are made monthly for the preceding calendar month. Based on the Funded Pensions Act, 1% of the parental benefit was paid into the Second Pillar as an additional contribution from the state budget for the children born before 2013.

You can confirm your wish to receive additional funded pension contributions together with other family benefits on the self service portal of Social Insurance Board.

When you register the birth of your child in the population register, this information automatically reaches the Social Insurance Board the next day. Then an offer of benefits for both parents will be sent to the Social Insurance Board self service portal. There you will also see the amount of the additional contributions to the mandatory funded pension, which you can claim for yourself, leave to the other parent or waive.

In order to receive the additional contributions to the mandatory funded pension as of the birth of the child, the claim must be made no later than six months after the birth of the child.

Additional contributions are made for one parent at a time. If several persons are entitled to claim additional contributions in respect to the same child, they must agree among themselves which person is will exercise the right to supplementary contributions.

Upon reaching retirement age, the First, Second and Third Pillar pensions will be paid regardless of whether you are working or not.

As of 2021, those who retire before retirement age will be paid a pension and salary at the same time (except for people who took early retirement before 2021).

Working while on pension is good for you because the social tax paid by your employer increases your pension. The income received in the business account also increases your pension. However, retiring from the Second Pillar will stop the requirement to make contributions. Contributions end on 1 January, 1 May or 1 September, depending on when the application for a Second Pillar pension is made. That is, if you are employed, and for example, apply for a Second Pillar pension in January, you will still need to contribute to the Second Pillar until 31 August.

In the following cases, no pension is paid if you’re still working

• Early retirement pensions are not paid if you’re still working. If you’ve reached retirement age, an early retirement pension can be paid if you’re still working.
• Of the recipients of survivor’s pensions, only children may work and receive a pension at the same time (up to 18 years old or, if studying, until 24 years old). All other recipients of survivor’s pensions may not receive a pension and a salary at the same time.
• Recipients of a retirement pension on preferential terms may not work in a job providing that benefit while also receiving a pension. The list of professions providing preferential treatment is available in the State Gazette (in Estonian).
• Payment of a pension for years of professional service is suspended if the recipient continues to work in a profession based on which he or she has been awarded the pension. If you continue working in a profession that does not entitle you to a pension, the Social Insurance Board will pay the pension in full. NB! Police, prison and rescue officers may continue working in a professional capacity and still receive a retirement pension.

If you have any questions, call the Social Insurance Board helpline at 612 1360 or send an email to [email protected].

The income tax rate is 20%. From the beginning of 2023, the general tax-free income rate for Estonian residents will be €7,848 per year, or €654 per month.

From 1 January 2023, there will be a separate rate of tax-free income for people who have reached pensionable age. The separate tax-free income is linked to the pensionable age and does not depend on total income, receiving pension, or the type of the pension. This tax-free income also applies if the person reaches pensionable age within the calendar year.

The Social Insurance Board automatically calculates the tax-free income of a person of pensionable age in the amount of €704 from the person’s pension. Read more about the calculation of income tax exemption of pensions

The important difference is that the total tax-free income (€7,848 per year) decreases as a person’s annual income increases, while the tax-free income at pensionable age (€8,448 per year) is a fixed amount that does not depend on the person’s annual income.

The current system of tax-free income for people below pensionable age will remain in place, with the amount of tax exemption available divided into three main groups:

• If you have an annual income of up to €14,400, or €1,200 per month, you will be able to benefit from the maximum exemption of €7,848 per year, or €654 per month.
• If your monthly income is between €1,200 and €2,100 (annual income between €14,400 and €25,200), the amount of tax-free income starts to decrease from €500, and the closer the income to €2,100, the lower the tax-free income.
• However, if the monthly income is above €2,100 (annual income above €25,200), the entire income is taxable and the tax-free amount is €0.

From 1 January 2021, receiving a pension from the second or third pillar will not affect the calculation of your tax-free income.

For more information on the income tax treatment of first-pillar pensions, see the website of the Social Insurance Board.

The taxation of second-pillar pensions is as follows.

Before the pensionable age of second-pillar pension:

• A 20% income tax applies to payments from the pension fund and the pension investment account.
• Income tax is not applied to payments to a person with no work ability. After the pensionable age of second-pillar pension:
• Income tax is not applied to lifetime pensions paid under a pension agreement or to fixed-term pensions spread over at least the average life expectancy.
• Income tax is not applied to funded pensions distributed over at least the average life expectancy.
• A 10% income tax is applied to lump-sum payments from the pension fund and the pension investment account.
• A 10% income tax is applied to shorter fixed-term pensions paid under a pension agreement and on shorter fund pensions.

If you are of pensionable age, your first-pillar pension is lower than the average old-age pension, and you also receive regular income taxable payments from the second pillar, the Social Insurance Board calculates the tax-free income first on the first-pillar pension and then on the second-pillar payments.

Information on the taxation of second-pillar payments can also be found on the website of the Pension Centre.

The taxation of third-pillar pensions is as follows. Before the pensionable age of third-pillar pension:

• A 20% income tax rate is applied to the partial or full surrender of insurance or the redemption of (a) fund unit(s).
• Death benefits disbursed under a supplementary funded pension insurance agreement are not subject to income tax if the agreement is concluded after 1 May 2002.
• Death benefits paid out under a supplementary funded pension insurance agreement taken out before 1 May 2002 are subject to income tax.
• Income tax is not applied to payments to a person with no work ability.

After the pensionable age of third-pillar pension:

• A 20% income tax rate is applied to payments if less than 5 years have elapsed since the conclusion of the savings agreement or the first acquisition of pension fund units.
• A 10% income tax rate is applied to lump-sum and fixed-term (contractually agreed maturity) payments if more than 5 years have elapsed since the conclusion of the savings agreement or the first acquisition of pension fund units.
• Income tax is not payable on lifetime payments from an insurance company (annuities) or on fixed-term payments from an insurance company or pension fund spread over at least the average life expectancy.

You can read more about the taxation of third-pillar payments on the website of the Pension Centre.

You can also read the articles ‘The taxation of pensions’ and ‘Calculation of exemption from income tax for pensions’ on the State Portal.

If you have any questions, please call the information line of the Social Insurance Board at 612 1360 or send an email to [email protected].

Information on the taxation of pensions can also be obtained via the information line of the Tax and Customs Board at 880 0811, via Skype (mta.eesti), by email at [email protected]; [email protected] (questions on residence, cross-border income, tax treaties); or [email protected] (tax advice for private individuals and self-employed persons). You can also send a message via e-MTA under ‘Communication’ -> ‘Correspondence’.

From 1 January 2023, the tax-free income rate for people who have reached pensionable age will be €704 per month. The Social Insurance Board automatically calculates the tax-free income of people of pensionable age in the amount of €704 from their pension. There is no need to apply to the Social Insurance Board for this.

For those who will not reach pensionable age in 2023 but who will receive a pension, the current system of tax-free income will continue to apply. You can apply to the Social Insurance Board to use the tax-free income

• in the self-service of the Social Insurance Board
• by post to Paldiski mnt 80, 15092 Tallinn.
• by email to [email protected]
• at the customer service points of the Social Insurance Board

You can find the application form on the website of the Social Insurance Board, but you can also write a free-form application.

In the application, you must indicate that the withholding agent should

• calculate tax-free income, or
• not calculate the tax-free income, or
• calculate a specific amount of tax-free income, for example €100 per month.

The pensions of all people living outside Estonia are subject to 20% income tax. An exception is made if you live in one of the following countries: Austria, Latvia, Germany, Spain, Moldova, Slovakia, Croatia, Norway, Slovenia, Ireland, Poland, United Kingdom, Italy, Portugal, Switzerland, Greece, France, Czech Republic, Lithuania, Romania, Ukraine, and Belarus. If you live in these countries, you must provide proof of tax residence from the tax authorities of your country of residence once a year.

If you have a valid certificate of tax residence, the Social Insurance Board pays your Estonian pension in full and it is taxable in the country of residence. If you have no residence certificate or its validity has expired, the pension is subject to 20% income tax in Estonia.

You can find more information about the taxation of your Estonian pension if you’re living abroad on the Social Insurance Board website.

Also read the article ‘The taxation of Pensions’ on the state portal eesti.ee.

If you have any questions, call the Social Insurance Board helpline at 612 1360 or send an email to: [email protected].

Information on the taxation of pensions is also available from the Tax and Customs Board helpline at 880 0811, by Skype (mta.eesti), or by sending an email to [email protected]; [email protected] (residency issues, cross-border income, tax treaties) or [email protected] (tax advice for individuals and the self-employed). You can also send a message by clicking on ‘Correspondence’ on the Communications menu of the Tax and Customs Board self service (e-MTA).

If you settle in another European Economic Area country or Switzerland when you are receiving a pension, you will receive the First, Second and Third Pillar pensions that you have earned in Estonia in the usual manner. You also have the right to continue receiving an Estonian pension in the following countries: Russia, Belarus, Ukraine, Moldova, Canada, Australia.

More information about receiving an Estonian pension while living abroad is available on the the Social Insurance Board’s website.

The Estonian state will pay a I pillar pension to a person of retirement age living elsewhere in the world if he or she has acquired at least 15 years of pensionable service in Estonia. No restrictions apply to II pillar and III pillar pensions. The amount of the pension depends on the age at which the person retires, the amount accumulated in his or her pension pillar and the selected method of payment.

If you have any questions, call the Social Insurance Board helpline at 612 1360 or send an email to [email protected].

JYes, the Social Insurance Board must be notified if you move to another country. You must also be submit an application (in Estonian) in order for the payment of your Estonian pensions to continue.

You can submit an application

• by e-mail to [email protected]
• by mail to Paldiski mnt 80, 15092 Tallinn
• by fax to +372 640 8155.

If you are receiving a pension abroad, you must provide proof of life, residency and, if applicable, tax residence each year.

If you live outside Estonia and receive a pension from Estonia (old-age pension, survivor’s pension or incapacity for work pension), you must provide proof of life by 1 March of every year. If proof is not submitted by the prescribed deadline, the payment of the pension will be suspended as of 1 April of the current year.

If the certificate is submitted later, the pension will continue to be paid retroactively, starting from the suspension of the pension.

In order to prove that you are alive, you must submit a proof of life certificate issued by the relevant authority in your country of residence. Any institution where the person is identified in person (institution paying the pension, local government, police, embassy, notary, etc.) is considered to be competent. The proof of life certificate must be signed by a competent authority. The person’s own signature on the proof of life certificate is insufficient.

The certificate can be sent:

• by mail to Paldiski mnt 80, 15092 Tallinn
• by email to [email protected]
• by fax to +372 640 8155
• by Skype by calling: Elusolekutõend. Skype calls will be answered Mon-Thurs from 9 am to 4:30 pm, on Friday from 9 am to 3 pm. The call must be made by the person him- or herself and be able to show the identity document.

NB! If you have already submitted a certificate of residence from another country to the Social Insurance Board, you do not need to submit additional proof of life. The residence certificate is also valid for one year and must be re-submitted every year.

Pensioners residing in the Russian Federation, Ukraine, Moldova, Lithuania and Latvia do not have to present proof of life.

Income tax (20%) is levied on the pensions of all people residing outside Estonia. However, your pension is not taxed in Estonia if you live in Austria, Spain, Croatia, Ireland, Italy, Greece, Lithuania, Belarus, Latvia, Moldova, Norway, Poland, Portugal, France, Romania, Germany, Slovakia, Slovenia, Great Britain, Switzerland, Czech Republic or Ukraine.

If you live in one of the countries listed above, you must provide proof of tax residence issued by the tax authorities of your country of residence once a year. If you have a valid proof of tax residence, the Social Insurance Board will pay your Estonian pension in full and it will be taxed in the country of residence. If there is no residence certificate or its validity has expired, the pension is subject to 20% income tax in Estonia.

More information is available on the Social Insurance Board website.

If, during your lifetime, you have earned at least one year’s worth of your First Pillar pension in a foreign country, you have the right to apply for your First Pillar pension from that country.

You can do this through the Social Insurance Board if you have worked in a European Economic Area country, Switzerland or a country with which Estonia has concluded a bilateral social security cooperation agreement.

Otherwise, you must contact the pension institution of the foreign country directly.

In order to receive a pension from a foreign country, a pension application and documents certifying the length of service in the other country must be submitted to the Estonian Social Insurance Board. The application forms are available on the Social Insurance Board website.

More information on applying for a pension from a foreign country is available on the Social Insurance Board website.

For information about the Second Pillar or Third Pillar pensions accrued in a foreign country, contact the authorities in the other country that deal with these issues.

If you have any questions, call the Social Insurance Board helpline at 612 1360 or send an email to: [email protected].

When you start work in Estonia, your employer is obligated to pay social security tax on your behalf and with that, you receive the right to a pension and health insurance.

The Estonian pension is paid from social tax, calculated on the gross salary. The employer pays 33% of the employee’s salary as social security tax, of which 13% goes to health insurance and 20% or 16% to the pensions of the currently retired. The social tax is divided between the I pillar and the II pillar, 16% and 4% respectively, when joining the mandatory funded pension (the II pillar). The person then pays an additional 2% mandatory funded pension payment into the II pillar.

It is a requirement that one should have 15 years of pension qualification in order to receive the Estonian I pillar pension. The Social Insurance Board counts a qualifying year as a year when social tax at least to the extent of the annual minimum salary or salary minimum limit value has been considered or paid on your behalf. You can find the salary minimum limits on the website of the Tax and Customs Board.

The 15 years need not all be obtained in Estonia to receive a pension from Estonia, but the right to a pension also emerges when the pension qualification totals 15 years through Estonia and the European Union or in a country with which Estonia has signed a social security agreement. Estonia has signed social security agreements with Russia, the Ukraine, Belarus, Canada, Australia and Moldova.

To discover how much pension rights you have collected in the I pillar, as well as pension assets in pillars II and III, you can look at the e-services of the state portal at the Notification of the pension insurance register and the personal pension calculator. To use the e-services, you must log on to the portal with an ID card, mobile-ID or Smart-ID.

Upon reaching the age of retirement, you can submit an application for a pension to the institution dealing with social security at the location of your residence, if you live in the European Union or in a country with which Estonia has signed a social security agreement.

If, by reaching retirement age, you live outside of the European Union and in a country with which Estonia has no social security agreement, you can download an application (in Estonian) for a pension from the website of the Social Insurance Board and submit it:

• by email to [email protected]
• by post to Paldiski mnt 80, 15092 Tallinn, Estonia
• by fax to the number +372 640 8155.

For any further questions, please call the Social Insurance Board at +372 612 1360 or write to the e-mail address [email protected].

A person born in 1983 or later joins the II pillar automatically. Those born earlier may also join the II pillar. This can be done by submitting an application directly to the Pensionikeskus at their self-service page or to an account manager. You can find a list of account managers on the Pensionikeskus website. You can also voluntarily join the III pillar.

From the Pensionikeskus website, you can read more about joining the II pillar (https://www.pensionikeskus.ee/en/pension-reform-2021/tpid/112/).

You will also receive payments from the II and/or III pillar when you retire if you have made contributing payments to them. It is possible to choose a lifetime or a fixed-term pension from the II as well as the III pillar. There is also the right to withdraw all funds accumulated as a single lump sum. From the Pensionikeskus website, you can read more about the possibilities for receiving a II pillar pension and III pillar pension.

When you leave Estonia, you will have the right to a pension from Estonia at the age of old-age pension valid in Estonia if you worked in Estonia for at least one year. The Social Insurance Board counts a qualifying year as a year when social tax at least to the extent of the annual minimum salary or salary minimum limit value has been considered or paid on your behalf. You can find the salary minimum limits on the website of the Tax and Customs Board. You must have 15 qualified years to receive an Estonian pension.

The 15 years need not all be obtained in Estonia to receive a pension from Estonia, but the right to a pension also emerges when the pension qualification totals 15 years through Estonia and the European Union or in a country with which Estonia has signed a social security agreement. Estonia has signed social security agreements with Russia, the Ukraine, Belarus, Canada, Australia and Moldova.

Address the institution dealing with pensions in the country of your residence if you live in the European Union or Russia, the Ukraine, Belarus, Canada, Australia or Moldova, and they will assist you in applying for a pension from Estonia.

You can download an application (in Estonian) for a pension from the website of the Social Insurance Board if, when reaching the age of retirement, you live outside of the European Union and in a country with which Estonia has not signed a social security agreement, and submit it:

• by email to [email protected]
• by post to Paldiski mnt 80, 15092 Tallinn
• by fax to the number +372 640 8155.

For any further questions, please call the Social Insurance Board at +372 612 1360 or write to the e-mail address [email protected].

You can, if you have contributed to them, withdraw your funds from the II and/or III pillars, when you leave Estonia. You cannot continue making contributions into the II pillar if you no longer have an income that is subject to social tax in Estonia. Should you decide to withdraw the money accumulated in II pillar, when you leave Estonia, you must take into consideration that when returning later to Estonia, you can only re-join that pillar if at least 10 years have elapsed since the funds were withdrawn. **You can read more about leaving the II pillar on the website of the Pensionikeskus.

There are no such restrictions on the III pillar. You can continue contributing to your III pillar after leaving Estonia if you desire to do so. You can also quit payments or withdraw the money you have collected. You can read more about withdrawing funds from the III pillar from the Pensionikeskus website.

You can use the accumulated funds from your pension if you have left Estonia but left your II and/or III pillars on hold. You are allowed to retire from the II and III pillars, if you do not have more than 5 years left until you reach the age of old-age retirement valid in Estonia. From the Pensionikeskus website, you can read more about payments from the II pillar and the payments from the III pillar.

Just as a pension granted in Estonia can be continued even if the pensioner moves permanently to another EU member state, people with pensions granted in other EU member states can receive their pensions in Estonia when they move here.

If you are already a pensioner, contact the Social Insurance Board, which will help bring your pension from another EU member state to Estonia.

If you are just applying for your pension, also contact the Social Insurance Board, which will help you apply for your pension from another EU member state.

If you are still a young person whose retirement age is still far away, just wait until your retirement age. No one living and working in another EU member state will lose the pension they have accrued in another EU country. Once you reach retirement age, contact the Social Insurance Board, which will help you apply for your pension from another EU member state.

The Social Insurance Board can be contacted by anyone, even if they are temporarily residing in an EU Member State during their retirement, by using the following options:

• the Social Insurance Board’s customer service throughout Estonia
• Self service portal of Social Insurance Board (necessary to log in with an Estonian ID card, mobile-ID or Smart-ID)
• By email to [email protected]
• By mail to Paldiski mnt 80, 15092 Tallinn.

If you have any questions about state pensions, call the Social Insurance Board helpline at 612 1360 or send an email to [email protected].

If you have any questions regarding Second and Third Pillar pensions, call the Pension Centre’s helpline at 640 8886 or send an email to [email protected].

Information on the taxation of pensions is also available from the Tax and Customs Board helpline at 880 0811, by Skype (mta.eesti), or by sending an email to [email protected]; [email protected] (residency issues, cross-border income, tax treaties) or [email protected] (tax advice for individuals and the self-employed). You can also send a message by clicking on ‘Correspondence’ on the Communications menu of the Tax and Customs Board self service (e-MTA).