In OECD countries, many pensioners work for financial reasons. In Estonia, such people make up 60.6 percent. Other reasons for working include enjoying the job and social relationships.
In Baltic countries and Southern Europe, pensioners often work for extra income. In Northern Europe, they mostly work because they enjoy the job.
In Estonia, many pensioners continue working even after reaching retirement age. One reason is the low old-age pension. There is also a shortage of labor in certain fields.
The Estonian pension system allows working and receiving a pension simultaneously. This helps pensioners continue working.
A study by the Development Monitoring Center shows that pensioners' employment rate in Estonia is very high. What matters is the type of work they do and how well their skills are utilized in the labor market.
Pensioners in Estonia work more than in other European Union countries. The employment rate for 65–74-year-olds is several times higher in Estonia than the EU average.