A recent analysis by Uku Varblane and Magnus Piirits indicates that Estonian pensions have seen substantial gains in purchasing power and are projected to continue increasing. However, the authors highlight a critical challenge: ensuring pensions keep pace with the evolving living standards enjoyed by the current working population. The core issue centers on the sustainability of the pension system and its ability to provide adequate support for retirees relative to those still employed. They also raise concerns about the potential for placing excessive risk on the first pillar of the pension system – the state-funded component. The analysis suggests a need for ongoing evaluation and potential adjustments to address these challenges and secure the long-term financial well-being of Estonian pensioners. Maintaining parity between pensioner and worker living standards is identified as a key policy goal.