- Estonia has a pretty reasonable system for investing/retiring. You have the: 1st pillar - just a national pension (not remarkable). 2nd pillar - government matches 2% of your pretax income with 4% (so you get 6% monthly). You can choose where this is invested. Eg. reasonable broad market index funds. You can take it out with 0-10% tax at retirement age. Or take it out in bulk earlier for 20% capital gains. 3rd pillar (voluntary) - you get to invest up to 6000 EUR/year into funds of your choice, and you get 20% (income tax) back from it every year at tax time. You can actually invest however much you like, but you don't get the 20% back from exceeding 6k. This number will probably increase soon though. Withdrawals are taxed at 10% at retirement age, but you can take it out whenever you want and get taxed 20. Personal Investment Account - You send post-tax money to the account (a bank IBAN technically, any bank account will do), invest the money however you like, and pay 20% income tax when your withdrawals become larger than the deposits. You are not allowed to mix your PIA money with your non-PIA money. No taxation during investing (even when buying/selling stuff for profit). Currently, dividends are taxed at tax time. Dividends will probably also become taxable like other profits in 2024. Investors usually recommend filling up the yearly 3rd pillar, then use the PIA to invest whatever money they have left over.