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Funded pension system flies high
Estonia’s LHV closes money market fund, to focus on pension funds
Estonia has highest average monthly retirement pension in Baltics

2002

207,200 people have joined funded pension system
100,000 people have joined funded pension
60,000 people have joined funded pension system
Estonian CSD launched pension index

Pensions in Europe

29.07.03

Europe’s pension crisis are wellknown to everyone. The ratio of retired people to the active labour force is set to rise from less than 25 per cent to about 50 per cent by 2050.

The European countryes with a state system combined with an element of private funding are the best placed to weather the pensions storm.

If there is an area of optimism in Europe, it is the approach of the eastern European countries, where the legacy of the communist regime made radical reform unavoidable. The prevailing system seems to be that of a limited state-financed pension, combined with compulsory defined contribution schemes. It is a solution which should avoid the worst pitfalls of the continental systems.

Abridged from Financial Times FM