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Raising children impacts the size of the pension

A parent (or the spouse of a parent, the parent's registered partner, guardian or caretaker in the family) who has raised a child of up to 18 years of age for at least 8 years has the right to receive a higher pension.

If there are at least three children or the child has a disability you can retire earlier.

One right can be simultaneously used by one parent. The arrangement of who will use which right shall be agreed by the parents in written form. If no agreement is reached, the rights shall be equally distributed between the parents.

Child-related pension supplements

The date of birth of the child depends on which pension supplement is added to your pension in connection with raising children

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Old-age pension under favourable conditions

You can go on old-age pension earlier if you have raised three children or a child with disability

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Additional contributions to the mandatory funded pension

In respect of children born since 2013, one parent at a time has the right to receive additional contributions to their funded pension, i.e. 2nd pillar account, from the birth of the child until they reach the age of three.

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Child-related pension supplements

The exact supplement to be added to the pension depends on the child’s time of birth:

  • Children born before 1991 

    we shall grant two additional years to the pension qualifying period and a pension supplement in the extent of 1,5 yearly rate for each child

  • Children born between 1991 and 2012 

    we shall grant from 1 April 2021 a pension supplement in the extent of 3,5 yearly rates for each child

  • Children born in 2013 and later

    •   If the parent has joined the 2nd pension pillar, we shall pay an additional 4% of the average income subject to social tax per one calendar month in Estonia to the pension account each month from the child’s birth until the age of three. Read more
    •   If the parent has not joined the 2nd pension pillar, we shall grant from 1 April 2021 a pension supplement in the extent of 3,5 yearly rates

One right can be used by one parent. However, different rights may be distributed between one another. For instance, one parent can retire early for raising children and the other can receive the pension supplement.

The arrangement of who will use which right shall be agreed by the parents in written form and they shall send respective requests on applying for a pension supplement for raising a child and on surrendering thereof to the email address [email protected]. If no agreement is reached, the rights shall be equally distributed between the parents.

The year of pensionable service as well as the pension supplement add a certain amount to the pension and the size of this amount is dependent on the yearly rate, which changes every 1 April.

For instance, as of 1 April 2021, the yearly rate of pension is 7.206 euros. Read more about the indexing of pensions.

The pension supplement shall be added to all pensions other than national pensions, superannuated pensions and special pensions. In the event that the amount of the old-age pension has not been calculated based on the person’s own pension qualifying period information, the pension supplement shall not be added.

Example 1. Peeter and Inga are married. They have three children. The first child was born in 1979, the second child in 1984, and the third child in 1992. Once Peeter retired, they decided together that his pension shall be increased in relation to raising children.

His pension was supplemented by two years of pensionable service and a pension supplement in the extent of 1,5 yearly rate for the first as well as the second child. For raising the third child, Peeter received a pension supplement in the extent of 3,5 yearly rates, since the child was born after 1991.

Example 2. Kaspar and Liia had a child in 2014. Liia has joined the 2nd pillar, while Kaspar has not. They decided together that from the birth of the child until they reach the age of three, Liia shall receive contributions for raising the child to the funded pension on her 2nd pillar account. Therefore, Kaspar will no longer be applicable for a pension supplement for this time in the future.

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Last updated: 02.01.2024

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