In 2020 NAV will distribute 10 billion abroad

NAVLogo NAV. Photo Norway Today Media

NAV distributed 6.8 billion kr to people living abroad in 2015. This is an increase of 40 percent from 2010. If the trend continues, payments abroad may go up to between 9 and 11 billion in 2020, according to a new analysis from NAV.

High migration to and from Norway, partly as a result of immigration, has helped people take their social security rights out of the country.
“Payments to foreign countries is growing faster than the total benefit payments. There is still no dramatic development,” says section manager Ole Christian Lien from NAV.
80 percent of foreign payments apply to retirement and disability benefits. This concerns already earned insurance rights that will be paid regardless of whether the recipients choose to settle in Norway or abroad. Three out of four age pensioners and disability pensioners abroad are Norwegian nationals.
The payments abroad have increased by about 7 percent a year since 2005, of which wages and inflation explains about half of the increase.
“It is likely with strong growth in international payments also come. High labor over the last decade may lead to more take their benefits back to their homeland. Strong aging of the population can provide more retirees abroad,” says Lien.
Depreciation of the kroner may, on the other hand, make bringing NAV benefits abroad less attractive. In different scenarios, NAV expects to paid out between 9 and 11 billion kr abroad in 2020.
NAV payments in Norway are expected to increase substantially in the coming years, primarily due to increased retirement expenses. The payments abroad were equivalent to 1.7 percent of the total benefit payments from Social Security Administration in 2015. In 2020, the percentage may increase to between 1.8 and 2.2 percent.

 

Source: NAV / Norway Today

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