Estonian pension reform one of the most successful in Europe
Expert Paavo Põld, chairman of Hansapanga Kindlustus, says that Estonia’s pension reform has been one of the most successful in Europe.
”In 1.5 years around 55 percent of Estonia’s working population or over 320,000 people have joined the funded pension pillar. The principles and technical solution that were developed have been working well and funds are being transferred without problems, ” said Paavo Põld.
Põld explained that the pension reform launched in Estonia was unique in this way that Estonia started to implement its pension reform from a very difficult demographic situation. ”It was a bold step in this situation to leave the decision on joining the pension fund voluntary and make it compulsory only for young people entering the labour market. This risk has paid off,” said Põld.