Estonian pensioners have withdrawn more than 112 million euros from their second pillar pension fund since the new rules came into force on January 1.
Money withdrawal from the second pillar is subject to a 20% income tax, but this drops to 10% for those over 60 this way discouraging younger people from taking the money from their second pillar pension fund. In January, more than 12,000 people aged 60 or more applied for a larger sum payment from their fund.
“The total amount of one-off payments on the basis of applications submitted in February and January was over 112 million euros,” unveiled Kristi Sisa, the head of the Estonian Pension Centre.
The average withdrawn sum was slightly over EUR 9,300 and the Estonian budget would receive approximately EUR 11.2 million in additional income tax. (BNN/Business World Magazine)