Retirement age in Estonia

What is the pensionable age and how does it change?

Under the wording in force today, the right to an old-age pension arises at 65 if you have at least 15 years of pensionable service acquired in Estonia (RPKS § 7 lg 1) [1]. From 01.01.2027 a person who has reached the pensionable age set by regulation of the responsible minister and has at least 15 years of pensionable service acquired in Estonia is entitled to an old-age pension (RPKS § 7 lg 1 and 7) [6].

From 2027 the pensionable age is linked to the change in the life expectancy of 65-year-olds. The calculation is based on the average number of remaining years of life of 65-year-old men and women, published every year by Statistics Estonia (Statistikaamet) (RPKS § 7¹ lg 2) [2]. By 1 January of each year, the responsible minister sets by regulation the pensionable age that will apply two years later (RPKS § 7¹ lg 6) [2]. The pensionable age may rise by no more than three months a year (RPKS § 7¹ lg 7) [2]. From 01.01.2027 the same rules are in RPKS § 7 (RPKS § 7 lg 2, 7 and 8) [6].

The minister's regulation "Vanaduspensioniea kehtestamine" sets the following pensionable ages (Vanaduspensioniea kehtestamine § 1) [3]:

• 2027: 65 years and one month, applied from 1 January 2027 (Vanaduspensioniea kehtestamine § 2 lg 1) [7];
• 2028: 65 years and three months, applied from 1 January 2028 (Vanaduspensioniea kehtestamine § 2 lg 2) [7];
• 2029: 65 years and four months, applied from 1 January 2029 (Vanaduspensioniea kehtestamine § 2 lg 3) [7].

When the pension is granted, the pensionable age that applied in the year in which you first became entitled to an old-age pension is used (RPKS § 7¹ lg 8) [2]. If you apply for a flexible pension before reaching the pensionable age, the pensionable age in force in the year you submit the pension application is used (RPKS § 7¹ lg 9) [2]. From 01.01.2027 the same rules are in RPKS § 7 (RPKS § 7 lg 10 and 11) [6].

Can I retire early?

Yes, with a flexible old-age pension (paindlik vanaduspension). The longer your pensionable service, the earlier you may retire (RPKS § 9¹ lg 2) [4]:

• with at least 20 years of pensionable service, up to one year before the pensionable age;
• with at least 25 years, up to two years;
• with at least 30 years, up to three years;
• with at least 35 years, up to four years;
• with at least 40 years, up to five years.

A reducing coefficient is applied to a pension granted early (RPKS § 11¹ lg 6) [5]. The coefficient depends on when you retire, the life table of Statistics Estonia and an interest rate (RPKS § 11¹ lg 1) [5]. After you reach the pensionable age, a flexible pension is not increased for the time during which you already received a state pension or a pension from another country (RPKS § 9¹ lg 4¹) [4]. Nor is it converted into an old-age pension under favourable conditions or a pension under a special act (RPKS § 9¹ lg 4) [4].

A parent who raised children (and also a parent's spouse or registered partner, a guardian or a foster parent) may be entitled to an old-age pension under favourable conditions, provided they have the service required for an old-age pension: having raised for at least eight years three children, one year, four children, three years, and five or more children or a child under 18 with a moderate, severe or profound disability, five years before reaching the pensionable age (RPKS § 10 lg 1) [8]. If several persons are entitled for the same children, they agree on who uses the right; without an agreement those years are divided equally between those entitled (RPKS § 10 lg 2 and 3) [8]. A flexible pension is not granted to a person who has been granted an old-age pension under favourable conditions (RPKS § 9¹ lg 5) [4].

Also note:

• a flexible pension and an old-age pension under favourable conditions are granted and paid abroad to a person who has reached the pensionable age (RPKS § 42² lg 1 p 1) [9]; this rule does not apply to pensions covered by an international agreement Estonia has concluded with that country (RPKS § 42² lg 4) [9];
• a person who has reached the pensionable age or has been granted a flexible pension is not an insured person under the Unemployment Insurance Act (töötuskindlustuse seadus, TKindlS) (TKindlS § 3 lg 2 p 5) [10].

What happens if I retire later?

You are also entitled to a flexible pension at any time after reaching the pensionable age if you have at least 15 years of pensionable service acquired in Estonia (RPKS § 9¹ lg 3) [4]. If the pension is granted after you reach the pensionable age, an increasing coefficient is applied (RPKS § 11¹ lg 5) [5].

A pension already granted can also be reduced or suspended for a while. The pension may be 50 or 100 percent of the pension calculated for you (RPKS § 25¹ lg 2) [11]. An application to increase, reduce or suspend it may be submitted once a calendar month (RPKS § 25¹ lg 3 and 4) [11]. The Social Insurance Board (Sotsiaalkindlustusamet) decides within five working days, and the change applies from the start of the next calendar month (RPKS § 25¹ lg 6) [11]. If payment is later resumed or the pension increased, an increasing coefficient is applied (RPKS § 11¹ lg 7) [5], except where the suspension results from the law (RPKS § 11¹ lg 8) [5].

How much service do I need and what counts?

Pensionable service is the time during which the insured person was engaged in an activity that gives the right to a state pension (RPKS § 27 lg 1) [12]. It consists of pensionable service (pensioniõiguslik staaž) counted until 31 December 1998 and pension insurance service (pensionikindlustusstaaž) counted from 1 January 1999 (RPKS § 27 lg 2) [12].

• From 1999. One year of pension insurance service is counted if the personalised pension insurance part of social tax was paid or calculated for you on at least the annual amount of the minimum wage (RPKS § 30 lg 1) [13].
• Children. Pensionable service includes, among other things, the time spent caring for a small child until the child turns three (RPKS § 28 lg 2 p 7) [14], and for a parent two years for each child they raised for at least eight years (RPKS § 28 lg 2 p 12) [14]. Those entitled agree on whose service the two years per child are added to; if they do not reach an agreement, the time is divided equally between them (RPKS § 28 lg 2¹) [14]. The Supreme Court (Riigikohus) declared the earlier rule unconstitutional to the extent that it did not allow the additional service to be divided (Supreme Court (Riigikohus) judgment 5-17-9/8) [15].
• Reduced work ability. If partial or no work ability has been established for you, the 15-year service requirement is reduced by one year for every three full years during which it was established (RPKS § 7 lg 2²) [1]. From 01.01.2027 this rule is in RPKS § 7 lg 9, which adds that the service requirement is not reduced for the time during which the personalised pension insurance part of social tax was paid or calculated for you under the Social Tax Act on at least the minimum wage (RPKS § 7 lg 9) [6].

Pensionable service is recorded to the day, and whether the service requirement is met is determined from the unrounded service (RPKS § 29 lg 1 and 3) [16]. Pensionable service (pensioniõiguslik staaž) is proved by the data in the population register or by documents; if these have not been preserved, you may apply to the Social Insurance Board to have witness statements taken into account (RPKS § 28¹ lg 1 and 2) [17]. From 01.01.2027 pensionable service is proved by the data in the population register and by documents proving the service; you may apply to have witness statements taken into account if there are no population register data or the documents have not been preserved (RPKS § 28¹ lg 1 and 2) [18].

What the law says

• „Õigus vanaduspensionile on isikul, kes on saanud 65-aastaseks ja kellel on vähemalt 15-aastane Eestis omandatud käesoleva seaduse 8. peatükis sätestatud pensionistaaž.“ [1] (translation: a person who has reached 65 and has at least 15 years of pensionable service acquired in Estonia under chapter 8 of the Act is entitled to an old-age pension; RPKS § 7 lg 1) – age alone is not enough; service is needed too; from 01.01.2027 the age requirement is the pensionable age set by regulation (RPKS § 7 lg 1 and 7) [6].
• „Alates 2027. aastast on vanaduspensioniiga 65 aastat, millele on lisatud 65-aastaste isikute eeldatava eluea muutus.“ [2] (translation: from 2027 the pensionable age is 65 years plus the change in the life expectancy of 65-year-olds; RPKS § 7¹ lg 1) – the age follows changes in life expectancy.
• „Vanaduspensioniiga võib tõusta kõige rohkem kolm kuud aastas.“ [2] (translation: the pensionable age may rise by at most three months a year; RPKS § 7¹ lg 7) – the yearly rise is capped; from 01.01.2027 the same sentence is in RPKS § 7 lg 8 (RPKS § 7 lg 8) [6].
• „Isikul on õigus vanaduspensionile kuni viis aastat enne ja mistahes ajal pärast“ [4] (translation: a person is entitled to an old-age pension up to five years before and at any time after reaching the pensionable age; RPKS § 9¹ lg 1) – you choose when to retire, and when retiring early, within the limits your service allows (RPKS § 9¹ lg 2) [4].
• „Vanaduspension määratakse eluajaks.“ [1] (translation: an old-age pension is granted for life; RPKS § 7 lg 3) – a pension once granted does not end after a fixed term; from 01.01.2027 the same sentence is in RPKS § 7 lg 12 (RPKS § 7 lg 12) [6].

What to do

1. The Social Insurance Board notifies you of your entitlement to an old-age pension at least six months before it arises (RPKS § 30¹ lg 1) [19]. Check your service records; if documents have not been preserved, apply to have witness statements taken into account (RPKS § 28¹ lg 2) [17].
2. Decide when you want to retire: earlier (if your service allows it, RPKS § 9¹ lg 2) [4], at the pensionable age or later (RPKS § 9¹ lg 3) [4].
3. Submit a pension application to the Social Insurance Board (RPKS § 31 lg 1) [20]. If you submit the application and the required data no earlier than six months before reaching the pensionable age, the decision is made no later than the day you reach it (RPKS § 32 lg 2¹) [21].
4. If you apply within three months of the day you reach the pensionable age, the pension is granted from that day (RPKS § 32 lg 2 p 1) [21]; otherwise it is granted from the day of application (RPKS § 32 lg 2) [21]. The decision is made within 30 working days of a proper application (RPKS § 32 lg 1) [21].
5. If you later want to reduce or suspend the pension, or receive it in full again, submit an application to the Social Insurance Board (RPKS § 25¹ lg 3, 4 and 5) [11].

Frequently asked questions

Can I still apply for an early-retirement pension?

For retiring earlier, the Act in force provides for the flexible old-age pension (RPKS § 9¹ lg 2) [4]. Where an early-retirement pension (ennetähtaegne vanaduspension) was granted before 1 January 2021, it is paid under the wording of the Act in force before that date (RPKS § 61²²) [22].

What if I do not have 15 years of service?

A person who has reached the pensionable age and is not entitled to an old-age pension is entitled to a national pension (rahvapension) if they have lived in Estonia on a basis named in the Act for at least five years immediately before applying for the pension (RPKS § 22 lg 1 p 1) [23]. A national pension is not granted, and payment of one already granted ends, if the person receives a pension from another country (RPKS § 22 lg 3) [23]. A national pension is not granted or paid abroad (RPKS § 42² lg 1 p 2) [9], except for pensions covered by an international agreement Estonia has concluded (RPKS § 42² lg 4) [9].

Which pensionable age applies to me if it rises in the meantime?

The pensionable age that applied in the year in which you first became entitled to an old-age pension is used (RPKS § 7¹ lg 8) [2]. For a flexible pension before the pensionable age, the pensionable age of the year of application is used (RPKS § 7¹ lg 9) [2]. From 01.01.2027 the same rules are in RPKS § 7 (RPKS § 7 lg 10 and 11) [6].

Can I suspend my pension for a while?

Yes. An application to suspend payment may be submitted once a calendar month, and payment is resumed on your application (RPKS § 25¹ lg 4 and 5) [11]. On resumption, an increasing coefficient is applied (RPKS § 11¹ lg 7) [5], except where the suspension results from the law (RPKS § 11¹ lg 8) [5].

Is the old-age pension paid for life?

Yes. An old-age pension is granted for life (RPKS § 7 lg 3) [1], from 01.01.2027 (RPKS § 7 lg 12) [6]; an old-age pension under favourable conditions is also granted for life (RPKS § 10 lg 4) [8].