Estonia’s Chancellor of Justice Questions Retirement Age — ERR News
Estonia’s Chancellor of Justice, Ülle Madise, has questioned the constitutionality of a new system for determining the retirement age, under which people born in the same year may become entitled to a pension at different times depending on their month of birth. She asked the Riigikogu Social Affairs Committee to urgently discuss the matter and explain the reasons for this approach.
Retirement age to be determined annually
The new system is set to take effect in Estonia in 2027. The official retirement age will be set separately for each calendar year, taking into account changes in the life expectancy of people aged 65. This will determine when people become entitled to an old-age pension.
Madise believes that the Riigikogu’s decision to link the retirement age to changes in the life expectancy of 65-year-olds complies with the Constitution. At the same time, she raised the question of whether a mechanism under which the retirement age differs within the same birth year because of the month of birth complies with the Basic Law.
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The difference may amount to up to three months
As ERR News reports, Tallinn University professor and demographer Lauri Leppik had previously noted that for people born in January, the retirement age could be one to three months lower than for those born in December of the same year. The exception would be a situation in which the calculated retirement age is a whole number of years.
For example, some people born in the same year will be able to retire at the age of 65 years and three months, while others will have to wait until 65 years and six months. According to Leppik’s estimate, based on the average pension amount at the time, a one-month difference would mean approximately one additional monthly payment — €825. For two or three months, the difference would amount to €1650 or €2475 respectively.
The Chancellor of Justice also questioned whether the state has convincing evidence for such a distinction. In particular, whether there are grounds to believe that people born in December 1962 have, on average, a life expectancy two months longer than those born from January through November of the same year.
