Estonia's pension has three pillars: the state pension (I), the mandatory funded pension (II) and the voluntary supplementary funded pension (III). This page explains the 2026 rates and the retirement age.
The more pillars you use, the larger your future pension. Pillar I comes from the state; you build pillars II and III yourself (III has a tax incentive). Work out the effect of the 2nd-pillar contribution on your net pay with the
salary calculator.
State pension (pillar I) 2026
| Item | 2026 |
|---|
| Retirement age | 65 years |
| Average old-age pension | €860/month (from 1 Apr 2026) |
| National pension | €414.10/month |
| Retirement age from 2027 | 65 y 1 m, then linked to life expectancy |
The pillar I pension depends on your work record and the social tax paid (pensionable service + annual factor). The state indexes pensions every year on 1 April.
Funded pension (pillar II) 2026
| Item | 2026 |
|---|
| Employee contribution | 2%, 4% or 6% of gross |
| State addition | 4% (from social tax) |
| Joining | voluntary – contributions can be paused and resumed |
The pillar II contribution is withheld before income tax and slightly reduces net pay. Pillars II and III grow as investments – long-term growth is illustrated by the
compound interest calculator or the
savings calculator.
Supplementary funded pension (pillar III) 2026
| Item | 2026 |
|---|
| Contribution tax incentive | up to 15% of taxable income (max €6000/year) |
| Income tax refund | up to €1320/year (6000 × 22%) |
| Withdrawals | more favourable tax from age 60 (units held ≥5 years) |
Pillar III is voluntary: you save yourself, but the state refunds the income tax on contributions (declare it in your tax return). The amounts and conditions apply in 2026; current information and fund comparison:
Pensionikeskus ↗. We review the rates at least once a year.
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Source: Pensionikeskus ↗ · Source: Social Insurance Board – pension ↗