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| The Estonian pension system |
The Estonian pension system relies on three pillars:
- 1st pillar or state pension
- 2nd pillar or mandatory funded pension
- 3rd pillar or supplementary funded pension
When looking at the life of pensioners now, it is clear that the state pension is not enough to live decently in old age. The first pillar only insures a minimum income, which is significantly lower than the average wages.
The second pension pillar ensures a pension that is almost twice as high as that of the first pillar.
But if you wish that when retiring, the quality of your life would remain about the same as before, you should also have the third pension pillar.
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