An important element in the endowment pension scheme is that it requires adequate savings to function. Therefore, a decision to launch an endowment pension scheme cannot merely be political. Instead, it should be an integrated economic resolution, which reinforces the need to re-invest endowment pension funds in the country's economy, and thus lower the cost of finance capital for domestic businessmen. However, more important that that is to ensure that the obligation to lay aside money for pension reform does not increase the poverty of Estonian society.
MBA, Estonian Business School