Estonia to allow savers to unlock 4 bln euros in state pension funds from 2021
TALLINN, Aug 22 (Reuters) - Estonia is planning to allow
savers to unlock 4 billion euros ($4.43 billion) in funds from
its state pension scheme from the start of 2021, its Finance
Minister Martin Helme said on Thursday.
Economists expect the move to boost spending and prices in a
small economy of 1.3 million people, where private spending
totals half of the 26 billion euro gross domestic product.
Helme said the government plans to introduce legislation to
change the pension system in October, with the law coming into
force gradually during 2020.
"The first payments should be made in the beginning of
2021," Helme told a news conference.
The change of the pension system was a key promise of the
conservative Fatherland party, the smallest partner in Estonia's
three-party coalition which formed a cabinet four months ago.
By the end of last year 725,470 Estonians had joined the
voluntary second pillar of the pension system, where the largest
fund managers are Swedbank, LHV and SEB.
Its funds total 3.95 billion euros, according to Finance
($1 = 0.9027 euros)
(Reporting by Tarmo Virki; Editing by Helena Soderpalm and Jan
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