Eesti Pank is starting an impact analysis of the changes to the pension system to assess how making the second pillar voluntary will affect the economy and state finances immediately and over the long term. The analysis will be completed in the middle of October at the latest.

The planned change of making the second pension pillar voluntary will affect the whole population, and both current and future taxpayers. Governor of Eesti Pank Madis Müller said that decisions about such wide-ranging changes should be fully thought through and should only be taken after thorough analysis. “The possible extent of the changes was published a couple of weeks ago and it is planned that they should be passed by the Riigikogu by the end of this year. This short timetable means that no in-depth analysis can be made of all the possible consequences of these vitally important changes. We will of course do our best to help the government and the Riigikogu make the best-informed decision possible. As a central bank we try first of all to assess what the immediate impact of the changes to the pension system will be on inflation and the Estonian economy. It is also important to analyse the long-term impact too though, such as how it will affect the sustainability of the state finances. We are aiming to produce preliminary answers to these questions by the middle of October at the latest”, he explained.

Economics researcher Jaanika Meriküll of Eesti Pank found at the start of this year that those who join the second pension pillar have more in savings when they reach retirement than those who do not join the pillar.

For further information:
Viljar Rääsk
Eesti Pank
6680 745, 5275 055
Email: viljar.raask@eestipank.ee
Press enquiries: press@eestipank.ee