OECD Report: Estonia Has the Highest Elderly Poverty Rate in the EU at 34.3%

According to the latest OECD report, Estonia's relative poverty rate among the elderly stands at 34.3%, the highest among EU member states. Centre Party politician Marika Tuus-Laul points out that among developed nations, only South Korea is in a worse position than Estonia.

Estonia's elderly population faces a concerning situation in international comparison: a fresh report by the Organisation for Economic Co-operation and Development (OECD) shows that Estonia's relative poverty rate among pensioners reaches 34.3%, the highest figure among EU member states.

Centre Party politician Marika Tuus-Laul highlighted this statistic, emphasizing that the international database confirms what opposition politicians have been warning about for some time: Estonia's elderly live clearly worse off compared to the elderly in other developed nations. "The OECD report also shows that our elderly poverty is the highest in the EU," she said.

Global Comparison

In the broader context of developed nations, Estonia occupies the silver-medal position in terms of elderly poverty, with only South Korea in a worse situation, where the elderly poverty rate reaches as much as 40.4%. This means that Estonia ranks second poorest among over 35 OECD member states in terms of relative poverty among pensioners.

Relative poverty rate indicates what proportion of the population lives on income that falls below 60% of the country's median income. Therefore, this figure does not only reflect low pensions, but also the gap between Estonia's general standard of living and its pension system.

Pressure on the Pension System

Estonia's pension system has been at the centre of political debate in recent years, particularly concerning the reform of the second pillar, which allowed people to withdraw their accumulated pension savings early. Critics have warned that this step increases the risk of old-age poverty in the long term. The OECD report adds weight to their arguments and raises the question of whether Estonia's current pension system is sufficiently sustainable and equitable.