The Minister of Social Protection, Signe Riisalo, signed the draft of the government’s regulation, according to which the old-age pension age in 2027 will be 65 years and one month. The retirement age must be announced two years in advance, which means that the government must confirm the retirement age of 2027 by the beginning of next year.
From 2027, the retirement age will be based on the calendar year, not the year of birth. This means that a new retirement age is established for each calendar year.
“The new formulas for calculating the retirement age were adopted six years ago. On the one hand, it helps to increase the length of service on which the pension is calculated, on the other hand, we inevitably have to deal with the decrease in the working-age population,” said Minister of Social Protection Signe Riisalo and added that everyone’s contribution to ensuring the sustainability of our social system is important.
The retirement age depends on the life expectancy of people aged 65 and is calculated as an average over a five-year period. For example, when calculating the retirement age in 2027, the average life expectancy of the years 2019-2023 is used as a basis. The new bases and formula for calculating the old-age pension age were adopted by the Riigikogu in the State Pension Insurance Act in 2018, and according to it, starting from 2025, the government must establish the old-age pension age by January 1 of each year by regulation.
In 2027, people born in 1962 will reach the old-age pension age, except for those born in December. People born in December will be 65 years and one month old in January 2028 and their retirement age will be in 2028, the exact time of which will be determined based on the 2025 Old Age Retirement Age Regulation.
To ensure the sustainability of the pension system, the old-age pension age has been increased since 1994, i.e. a total of four times. In 2009, it was decided to raise the old-age pension age to 65 by 2026. Finally, it was decided that the old-age pension age will change from 2027 along with the change in life expectancy, so the change in the old-age pension age is statistical and depends on the change in life expectancy.
2024-10-29 07:26:00
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