Pension pillar II calculator – withdrawal, tax and saving

Example: a 45-year-old with 15,000 € in pillar II gets 11,700 € by withdrawing now (22% income tax). Leaving it in at a 5% return until age 60 and withdrawing then at 10% tax gives an advantage of 6,519 € over investing it yourself.

The calculator shows how much you get from Estonia’s pension pillar II with different payout options and how much you save for retirement with a 2%, 4% or 6% contribution.

How are pillar II payouts taxed?

Payout	Income tax
Withdrawing everything, more than 5 years before pension age	22%
One-off payment at pension age or up to 5 years before	10%
Fund pension with the recommended duration or longer (paid at least 4× a year)	0%
Fund pension with a shorter duration	10%
Lifelong pension from an insurer	0%

Source: Pensionikeskus. Payouts taxed at 22% or 10% do not reduce the basic exemption. No 2% security tax was introduced on wages or pensions (Estonian Tax and Customs Board).

What to know about withdrawing

Before pension age you can withdraw the whole amount (as of 6 Nov 2026 according to Pensionikeskus); a change approved by the government will also allow partial withdrawals in future.
Withdrawing stops contributions for at least 5 years – including the state’s 4% of gross salary. You can rejoin once.
Money is paid out on fixed dates: application 1 Dec–31 Mar → by 20 September, 1 Apr–31 Jul → by 20 January, 1 Aug–30 Nov → by 20 May.
The line “if you withdraw and invest it yourself” assumes the same return and 22% income tax on gains when sold – so the comparison is fair. Fund and account fees are not included.

Recommended duration

A fund pension is tax-free if the payout period is at least as long as the average remaining life expectancy (Statistics Estonia, men and women combined, rounded to whole years): e.g. 21 years at 63, 19 at 65, 16 at 70. The calculator uses 2024 data. Pensionikeskus shows the exact duration and amount when you apply.

Should you raise your contribution to 4% or 6%?

The state always adds 4% of gross salary from social tax, regardless of your rate. Your own contribution is deducted before income tax, so an extra 2% reduces net pay by only about 1.56%. The rate can be changed once a year – an application by 30 November takes effect from the next year. See the effect on net pay in the salary calculator.

Amounts are nominal – future money buys less because of inflation (see the real wage calculator).

Frequently asked questions

How much do I get if I withdraw my pillar II money?

If you are more than 5 years from pension age, 22% income tax is withheld – from €10,000 you get €7,800. At pension age or up to 5 years before, a one-off payment is taxed at 10% and a fund pension with the recommended duration is tax-free. Withdrawing stops contributions (including the state’s 4%) for at least 5 years.

Is it worth raising the pillar II contribution to 4% or 6%?

The extra contribution reduces net pay by less than its size, because the pillar II contribution is deducted before income tax: an extra 2% costs about 1.56% of net pay. The state’s 4% from social tax is added in any case. The “Saving and contribution rate” mode shows how much larger your assets are at pension age and what it costs in net pay per month. The rate can be changed by 30 November for the next year.

Sources

Based on official sources · last reviewed 2026-11-06.