Majority of Estonians not dependent on state retirement benefits, according to SEB survey
In a shocking revelation, a recent SEB survey suggested that only one-third of Estonians believe they can comfortably survive on a state pension when they retire. The survey showed that an astounding 67% of people in Estonia believe state support fails to cover even essential expenses like food, housing, and medication.
Surprisingly, despite half of Estonia's population considering monthly savings crucial, 57% of respondents admitted they never calculated their future pension potential. One in ten respondents admitted they have no plans to save extra money for retirement at all.
Gert Vilms, the head of SEB Varahaldus, warned that this lack of savings could lead to a severe drop in income for retirees, calling it an "unpleasant surprise."
Vilms emphasized the need for early retirement savings but stated that a lack of knowledge and readily available cash is hindering people from taking actual steps.
"Saving for retirement should be a priority from a young age," said Vilms. "Start with small amounts to create a regular saving habit."
According to the survey, those between the ages of 30 and 49 seem to be the most proactive in supplementing their pensions. The survey was conducted by Norstat in April 2025 and involved 1,000 residents of Estonia aged 18-65.
Given the evolving pension system in Estonia and the increasing life expectancy, early retirement requires strategic financial planning. While specific findings from the 2025 survey are unavailable here, robust early retirement strategies typically involve maximizing pension contributions, diversifying investments, creating an emergency buffer, delaying or flexible withdrawals, and monitoring and adjusting spending habits.
To ensure long-term financial security, Estonian savers should consider diversifying their investments, delaying pension withdrawals, and creating a war chest for emergencies. Consulting a financial advisor would also be beneficial to tailor strategies to individual circumstances and plan efficiently for tax, investment, and withdrawal considerations.
- Despite many Estonians acknowledging the importance of savings for future personal-finance needs, a significant number (57%) admitted to never calculating their potential pension, indicating a potential lack of preparation for retirement.
- In light of the concerns raised by the survey and the evolving pension system, it is crucial for individuals to take proactive steps in their personal-finance management, such as saving from a young age, diversifying investments, and creating an emergency fund, to ensure long-term financial security in retirement.
