OREANDA-NEWS. March 22, 2010. During the programme “Reporteritund” at Vikerraadio, Prime Minister Ansip said that the gradual increasing of the retirement age beginning in 2017 will ensure a pension increase for current and future pensioners. Otherwise, according to the head of government, taxes should be raised, pensions decreased or masses of migrant workers brought to Estonia to be able to pay out pensions.

“If the retirement age is not increased, the state will in the future lose EEK 2-3 billion of taxes per year,” Prime Minister Ansip admitted during the radio show. The head of government reminded us that in Estonia, retirement pensions have doubled during the past five years. “In the future, we must also ensure a retirement pension of at least 40 per cent of the average wage to pensioners,” Ansip said.

According to the draft legislation sent to the Riigikogu, the retirement age would be gradually increased by three months a year, so that by 2026, it is 65 years for both men and women, which is the most common retirement age in the European Union countries. At the moment, the retirement age for men is 63 years and for women 60 years and 6 months. By 2016, the retirement age for women will also be increased to 63 years. The raising of the retirement age in said form would mainly affect the people who are currently up to 50 years of age. The people who are at the moment 50-60 years old, whose retirement age will arrive in 2017-2026, will remain in the transition period. All people who are older than 56 will retire according to the order currently applicable.

The retirement age is higher than the general retirement ages of the Member States of the European Union only in Ireland (66 years) and lower mainly in Central and Eastern European countries, as well as France (60 years), although it has now been decided to increase the retirement age to 65 there as well. In most European countries, the increase of the retirement age has either been agreed upon or is being planned.

In the Government Briefing Room, the discussion paper “Trends that cause the increase of the retirement age, and main effects of the change” can be read, which has been prepared by the State Chancellery, the Ministry of Social Affairs and the Ministry of Finance:

http://www.valitsus.ee/brf/index.php?id=296856&tpl=1007&external=0&search=&aasta=2009-