On Thursday, the Estonian government approved the pension index that will result in a 5.3% increase in the average old-age pension starting April 1. This decision translates to an increase of approximately €43, raising the average pension from €817 to €860 per month.

The adjustment reflects the government's efforts to improve financial support for retirees in Estonia, acknowledging the rising cost of living and the need for pensions to keep pace with inflation. This increase is significant for many seniors who rely on their pensions as their primary source of income.

The implementation of this pension increase will be closely watched as it impacts not only the lives of retirees but also the broader economic landscape in Estonia, where aging demographics are prompting discussions about sustainability and pension funding in the long term.