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Pension Calculation

Pension formula:

The pension amount consists of three parts.

  1. The pension base part is the basis that is the same for all different pension types. Starting from April 1st, 2020, the base part is 215,5148 euros.
     
  2. The pension qualification period part depends on the time worked, studied, and served in the army until December 31st, 1998. These years are taken into consideration based on the employment records book and other documents. To find the qualification period part, the pension qualifying period collected until December 31st, 1998, shall be multiplied by the yearly rate. The yearly rate is the cost of one pension qualifying year or the insurance component. Starting from April 1st, 2020, the yearly rate is 7,104 euros.
     
  3. The insurance part of the pension depends on the sum of insurance components that are calculated since January 1st, 1999, according to the social tax paid for you. To find the insurance part, the total of the insurance components is multiplied by the yearly rate. The yearly rate is the cost of one pension qualifying year or the insurance component. Starting from April 1st, 2012, the yearly rate is 7,104 euros.
 

B

BASE

S

QUALIFICATION PERIOD PART

K

INSURANCE PART

P

PENSION

215,5148

yearly rate (7,104)  x pension qualifying period

yearly rate (7,104) x total of insurance components

=

 

Example 1.  A person has 15 years of pension qualifying period but no insurance part. The base amount is 215,5148 euros. The qualifying period is 15 years multiplied by the yearly rate 7,104, which totals 106,56
 euros. As there is no insurance part, the pension amount is base (215,5148 euros) and qualification period part (106,56 euros) added up, which means the pension amount is 322,0748 euros.

 

BASE

QUALIFICATION PERIOD PART

INSURANCE PART

PENSION

215,5148

7,104

15

106,56

7,104

0

0

322,0748

 

Example 2. A person has 25 years of pension qualifying period and 10 years’ worth of insurance components. The base part size is 215,5148 euros. The qualifying period part is 25 years multiplied by the yearly rate 7,104, which totals 177,6 euros. The insurance component size is 10 years multiplied by the yearly rate 7,104, totalling  71,04 euros.
To find the total pension amount, the base part 215,5148 euros, qualifying period part 177,6 euros, and the insurance component size 71,04 euros are totalled up, resulting in the pension of 464,1548 euros.

BASE

QUALIFICATION PERIOD PART

INSURANCE PART

PENSION

215,5148

7,104

25

177,6

7,104

10

71,04

464,1548

 

Example 3. A person has 30 years of pension qualifying period and the insurance components also total 30. The base part size is 215,5148 euros. The qualifying period part is 30 years multiplied by the yearly rate 7,104, which totals 213,12 euros. The insurance component size is 30 years multiplied by the yearly rate 7,104, totalling 213,12 euros.
To find the total pension amount, the base part 215,5148 euros, qualifying period part 213,12 euros, and the insurance component size 213,12 euros are totalled up, resulting in the pension of 641,7548 euros.

BASE

QUALIFICATION PERIOD PART

INSURANCE PART

PENSION

215,5148

7,104

30

213,12

7,104

30

213,12

641,7548

 

Calculator for the I pension pillar  http://www.pensionikeskus.ee/eesti-pensionisusteem/kalkulaatorid/1-samba-kalkulaator/