The Estonian Social Minister, Karmen Joller, has proposed a government regulation draft that aims to raise the average pension from 817 euros to 860 euros effective April 1, 2025, marking a 5.3% increase. In line with this, the people's pension will also see a rise, increasing to 414 euros per month. This annual adjustment of pensions connects them with wage and price changes to maintain their balance over time, evaluating market conditions such as a reported 4.8% increase in prices for 2025.

In her statement, Minister Joller encouraged individuals nearing retirement to consider flexible pension options that would allow them to optimize both their pension savings and tax benefits. For those who wish to continue working before fully retiring, delaying the start of pension withdrawals could be advantageous. For example, if pension withdrawals are postponed by one year, it could increase the pension amount by nearly 8% for life.

The changes reflect an ongoing commitment by Estonia's government to ensure that pensions keep pace with inflation and provide adequate support for retirees. Additionally, these adjustments underline the importance of informed decision-making regarding retirement strategies for the aging population in Estonia, particularly encouraging potential retirees to weigh the benefits of delaying pension access against their personal work situations and financial needs.