Flexible pension

Flexible pensions can be taken up to five years before the normal retirement age and at any time after the retirement age. To retire earlier, you need to have more years of pensionable service.

If you want to retire

• up to 1 year earlier - at least 20 years of pensionable service
• up to 2 years earlier - at least 25 years of pensionable service
• up to 3 years earlier - at least 30 years of pensionable service
• up to 4 years earlier - at least 35 years of pensionable service
• up to 5 years earlier - at least 40 years of pensionable service

If you retire earlier, your pension will be lower and will not change when you reach retirement age. If you retire earlier, the average pension reduction in 2023 is as follows:

• 5 years earlier -30.06%
• 4 years earlier -25.12%
• 3 years earlier -19.7%
• 2 years earlier -13.66%
• 1 year earlier -7.13%

Flexible pensions can also be taken at any time after the normal retirement age. To qualify, you must have at least 15 years of pensionable service in Estonia.

If you retire later, your pension will be higher. If you retire later, the average pension increase in 2023 will be as follows:

• 1 year later +7.85%
• 2 years later +16.50%
• 3 years later +26.08%
• 4 years later +36.80%
• +48.76% after 5 years

The percentages of reduction and increase shown are based on the forecast. The specific reduction or increase percentage will be determined by your year and month of birth and the moment the pension is awarded.

In addition to the date of retirement, the reduction or increase depends on the life table of the Statistical Office and the interest rate of the European Central Bank bonds. These data are updated annually on 1 January. The percentage used to determine the pension will remain unchanged.

It is also possible to work while receiving a flexible pension, i.e. to receive pension and salary at the same time. Read more about working while receiving a pension.

Starting in 2021, if you wish, you can also withdraw half of your pension every month and stop receiving the pension altogether. This option is intended for those who already receive a pension but manage without a pension or with half a pension for a certain period of time and can thus increase the size of their later pension. The suspended part of the pension is not paid out all at once, but you get a slightly larger pension every month for the rest of your life. Future pension indexation will be based on the increased pension. The pension suspension multipliers are the same as the flexible pension multipliers.

The pension can be suspended and unsuspended once a month. For this purpose, an application for suspension-continuation of old-age pension must be submitted to the Social Insurance Board. Your desired change will take effect from the next calendar month. The suspension cannot be terminated retroactively.