After 20 years of growth, pension payments decrease

NAV, terminations social assistanceNAV logo. Photo Norway Today Media

The average pension payment from Nav decreased in 2015, after over 20 years of increase. The probable reason is that more people are taking out retirement benefit payments early.

When more people are taking out  their pension payments when they are 62 years of age,the annual payout sinks by up to 25 percent. When enough people do this, it will play an important part in pulling  down the average for all payments, writes Aftenposten.
– This is just a beginning of a trend that will mean a much greater drop in pension payments than this in the coming years. As early retirees gradually grow older, the decline in pension payments spread to increasingly older people, section manager Ole Christian Lien in the knowledge department  in Nav says.
He warns that it is important to plan for reduced retirement income if you will be receiving pension payments at 62 years of age. Especially those who in first receive pension payments combined with continued wages, will get an unpleasant surprise when they stop working.
Pension economist Knut Animal Haug Storebrand warns people against believing that it is smart to start pension withdrawals already at age 62, while still in a job.
– No matter how you calculate it, it will most profitable is to avoid withdrawal early and wait until you are 67, says Haug.
Source: NTB scanpix / Norway Today

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