Government is pushing age of retirement to 65 years
Estonian government is planning to approve Estonian Competitiveness Plan on tomorrow’s session, which includes
Lauri Leppik, professor of Tallinn University , approved connecting the rise of retirement age with developments of expected life span
also gradual rising of the retirement age to 65 years by the end of 2024.
This Competitiveness plan with increasing the retirement age has been discussed already once on government’s office session, and changing the pension age was not expelled from that plan this time.
According to current law, retirement age is 63 years, except for women born in 1944- 1952, who can retire earlier. The age of retirement will be equalized by 2016.
From 2017 retirement age for both men and women would increase by 3 months in a year.
Minister of social affairs Hanno Pevkur would not give his evaluation for the increase of retirement age before the government’s session. He stressed that at the moment government has not reached a decision concerning the increase of retirement age.
“The purpose is to start a discussion. If government decides that it is necessary to continue the topic, ministry of social affairs in cooperation with ministry of finance will start evaluations of influence and also start through consultations with partners outside the government.”
Pevkur said that on EU Council summit conference in Barcelona in 2002, it was agreed that retirement age in Europe should be 65. In order to achieve that, discussion has to be started how to continue after 2016.
Competitiveness Plan and rising of the retirement age has been written by State Chancellery, who justifies the increase the retirement age by constant increase of pensioners compared to workers, which threatens to empty the pension fund and forces the government to use reserves from other fields instead.
From 2025 state expenses on pensions would decrease about 2 billion kroons a year.
Vice chairman of Rahvaliit and Member of Parliament’s social committee Mai Treial said that Rahvaliit would definitely not agree with this plan as already now many men are left without pension as the average life expectancy is 65- 67 years. This age should not be raised until the average age has vastly increased and reached the average level of EU.
Also the ex-minister of social affairs and Member of Parliament Jaak Aab stressed that at the moment the average age for men is so low that we cannot discuss raising it.
Lauri Leppik, professor of Tallinn University and expert of pension system, approved connecting the rise of retirement age with developments of expected life span.
At the same time the union of Reform Party and Isamaa and Respublica might not unite life expectancy with the increase of retirement age as allegedly low average life span is caused by risky behavior.
According to the latest data of Statistics Estonia, life expectancy of 60 years old men is 16.4 years and for 65 years old 13.6 years; so those men who reach the retirement age, have usually 10 more years to live.
The necessity of rising the retirement age has been several times openly emphasized by General Auditor Mihkel Oviir and supported by Estonian Employers Confederation. Estonian Prime Minister Andrus Ansip noted a year ago that by 2027 retirement age in Estonia should be 65 years and by 2035 67 years.
In his comments Mihkel Oviir said that problem of Estonia is the very big number of premature retirees and that Parliament has to reach a decision before 2016 when retirement age is equalized. If the age of retirement would not be raised and the number of taxpayers/ workers cannot be constrained or increased, inevitable alternative is keeping constant or decreasing the national pensions.
As a response for the argument of men’s short life expectancy, Oviir proposed taking initiative ourselves by being more sportive, avoiding alcohol abuse and being more kind to the world and those surrounding us.
