Many Norwegians does not believe the pension will be enough
55 per cent of Norwegians believe the retirement pension alone will not meet their needs when they leave work, according to a survey conducted by the newspaper Dagbladet.
The oldest are the most optimistic. 56 per cent of those who are over 60 years believe the pension is – or will be – sufficient, while 36 per cent think they will need more than that.
The age group 25 to 39 has the least confidence in their retirement plan. Only 18 per cent think the pension will cover their expenses, while 71 per cent believe they will need more.
In the youngest group, 17 to 24 years, 24 per cent believe that the pension is sufficient, against 46 per cent who think it will be too little. In the last group, 40 to 59 years old, 26 per cent believe that the pension will cover their needs, while 63 per cent think they will need additional funds.
Chief economist in the Trade Union (LO), Roger Bjørnstad, believes it may be difficult to live on the retirement pension if leaving the working life as a 62-year-old.
– If a person born in 1963 has to retire at the age of 62, you may have to live on 45 per cent of your income. If you have a salary of NOK 500,000, you will then have to make do on NOK 225,000 a year.
– It can be difficult for many. Here is even AFP (Added Pension Agreement Plan) – which not everyone has – included, he says.
The life expectancy adjustment in public service pensions has made the scheme even worse for younger employees, he believes.
– For the younger employees, this will hit them harder and harder, says Bjørnstad.
LO and the Union of Norwegian businesses (NHO) will this weekend try to unravel the knot regarding the AFP scheme. A recent evaluation has shown that many fall outside the scheme due to sickness or because they lose their jobs late in their careers.
© NTB Scanpix / #Norway Today