COUNTRY REPORT: ESTONIA
1.2. Demographic characteristics of Estonia The population of Estonia is characterized by two very important tendencies: 1) the decrease of population which started in the 1990s continues and 2) the population is ageing. The decrease was noticeable in the number of children and young people while the share of the age group 65 and older has grown in the population. The percentage of population aged 65 or older to working age people (aged 15 64) was 25.3% and this indicator has continuously increased from 2000. Estimably more people will leave the labor market than enter it in the forthcoming decade (it means that labor market reprisal index is less than 1). Mortality has decreased and the average life expectancy has increased both for men and women. Still, the life expectancy of women at birth is over 10 years higher than the life expectancy of men. While in 2008, the life expectancy of Estonian women at birth was 79.2 years, for men it was only 68.6 years. In addition, the mortality of men aged below 65 is almost three times higher than the mortality of women. 1.3. Social characteristics of Estonia The economic recession and demographic situation create a relatively new situation for the social sphere. We are facing serious challenges. The share of persons who receive a pension has increased in society, reaching 28.5% at the beginning of 2009. The expenditure on pensions accounted for 7.2% GDP, the highest level of all time. The main target groups of social welfare are children, the elderly and persons with disabilities, persons with special mental needs and persons using social services in the case of emergencies. Social welfare for the elderly and disabled persons is organized by the local governments. This concerns, in particular, home care services, personal assistant service, support person service, housing service, day center services, care for disabled persons in home, and 24 hour care in welfare institution. The total number of institutions that provided social services was 322 at the end of 2008. The number of staff members of social welfare institutions at the end of 2008 was over 5700. The total expenditure on welfare services in 2008 amounted to 1 734 million EEK, including 40% paid by the state, 38% by the local governments, the self financing of service users was 22%. Important developments in services for the elderly and disabled persons, also increasing contributions towards purchases of technical aids for the elderly and disabled persons have increased the number of service users and the expenditure on the provision of services. The total sum of social protection in 2006 amounted to 25.4 billion EEK, of which 44.4% was expenditure related to old age. 1.4. Economic characteristics of Estonia Living standard and poverty
Rapid growth of Estonia s economy until 2007 improved the quality of life of Estonian people, giving a major boost to the standard of living. The main income sources in Estonia are: paid employment and old age pension (2/3 and 1/6 of a household member s income, respectively). In 2008, the average gross wages for normal working hours of full time work were calculated at 12 912 EEK per month per salary receiver, and the average old age pension was 4 356 EEK per month, per an old age pension receiver. The growth rate in 2008 was particularly high in the case of the monthly old age pension, which increased by almost ¼ (23%) in comparison to the previous year. Estonia has managed to adhere to the minimum standard of the European Code of Social Security, pursuant to which, average pension of a pensioner with 30 years of pensionable service should form at least 40% of average gross wages of an unskilled male production worker. A positive trend in the period 2000 2007 was reduction of the gap between the average disposable income in Estonia, and the average disposable income of households in rural areas. In 2004, the absolute poverty rate in Estonia was 15%. In Estonia, as in the other member states of the EU, relative poverty line is considered to be 60% of median income of inhabitants. Although the relative poverty rate decreased both among children and inhabitants in working age, in the period 2000 2007, the situation of seniors aged 65+ deteriorated. In 2007, every third senior belonged to the relatively poor. The Estonian relative poverty rate in 2007 was close to the average level of 27 member states (17%), similar to Lithuania and the United Kingdom, but it was twice as high as in the Czech Republic, the Netherlands and Iceland (10% in all three). The risk of relative poverty in 2007 was higher than in Estonia in Latvia, Greece, Spain and Italy. 1.5. Pensions In the case of old age, incapacity for work and loss of provider, a person s income is insured by the state pension insurance. The types and extent of state pensions are established in the State Pension Insurance Act. The types of state pensions are: old age pension, pension for incapacity for work, survivor s pension and national pension. Persons who have attained 63 years of age and whose length of pensionable service earned in Estonia is at least 15 years, have the right to receive an oldage pension. The age limit established by law is applicable for men from 2001, while for women it will start applying from 2016, when women born in 1953 will reach retirement age. There are certain groups which have the right to receive a pension until the age of retirement: persons who have been declared permanently incapacitated for work, also upon the death of a provider, superannuated pensions (police officers, workers of life serving service, employees of penal institutions, some mining and excavation workers, some categories of aviation workers, etc). On January 1, 2009, the Estonian population included 382 316 persons who received a state pension and 63% of them were women. The total number of pension receivers has increased by 0.8% from 2000 to 2009. In the state budget of 2008, pensions accounted for almost 1/5 (19.99%) of total expenditure, which is the highest level of the last 5 years. 1.6. Volunteer work In the book Handbook for the Elderly Volunteer the author Heino Hankewitz values highly voluntary work in Estonia. He says, Voluntary work is an important factor in the formation of solidarity and democracy of modern society. Voluntary activity rises from the inner wish and will of people to
influence the environment they live in. It also reflects one s friendly attitude towards fellow citizens, wish for being active and self realization. Voluntary activity has a symbolic, ideological and social worth. In the coming years more and more will be spoken about voluntary work among the elderly in Estonian society. Their share today is bigger than that of young people, and there are signs that it will be on the rise. What are the reasons? Better health, longer life expectancy and growing demand by society. The elderly possess a lot of free time, competence and knowledge to share with fellow citizens. It is important for a volunteer to belong to a certain group because then they behave more actively and feel that the more they do, the better it is for themselves and for others. Voluntary activity gives rise to mutual recognition and cooperation. In Estonia, every tenth citizen belongs to volunteers and one fifth of elderly people are volunteers. Not only their contribution is important, but also their example to the young. There is one more characteristic feature in our voluntary activity. In other parts of the world, voluntary activity is connected with high living standards, but in Estonia in spite of low incomes the elderly are exposed to volunteering. As a rule, they belong to organizations. NGOs give a good chance for co operation. Here, one can share one s experience with others so that the final result can be improved. Here, elderly people s voices sound louder when there is a need to influence the political life of Estonia. The pitiful fact is that in this field men s share compared with women s is much lower. Besides lots of positive sides there are also some problems to be faced. For example, these are problems connected with insurance in case of accidents, etc. Who should pay the insurance expenses the person himself, his organization or even the state? The real situation today needs a solution. It is hard to find a state in the world, where the number of volunteers would be sufficient Estonia is no exception. So the recognition of volunteers comes first and foremost. By this is meant benevolent attention and gratitude. It is also important to give them a chance to participate in advanced learning and to prepare suitable conditions for their work. They must be supplied with the latest information concerning everyday life around them (health, catering, culture, etc). It is a good tradition with us to observe the International Volunteer s Day at the beginning of December. The sensitive mental experience of our older generation is inferiority complex, estrangement from everyday life, indifference, stress, depression, abandonment, sadness and negativism. It is estrangement from former colleagues, acquaintances, former active way of life, stress caused by a lower life standard. By experience we know that voluntary self help can work miracles. Our government is aware of the concrete situation and so in 1999 the Act Basis of the Elderly Policy in Estonia was approved. Much more attention has been paid now to intensify voluntary activity. It is obvious already today that our leaders have started to realize the advantages that volunteering offers to modern society. There are lots of possibilities for the elderly voluntary activity in Estonia: all kinds of NGOs, day centers, neighbour assistance, self help, local history research organizations, charity movements. Working with fellow citizens and self help motives go here hand in hand, uniting friendly interests of society and individuals. This statement is based on a project put forward by the Estonian Charitable Agency. Elderly volunteers have a real and positive impact on the Estonian society.