53% of Norwegian pensioners have loans, and a third of them have debts of over half a million. The debt has increased by 134% in the past decade.
Many pensioners hadn’t planned to bring their debts into retirement, reported the newspaper, VG. The figures are based on a survey conducted by Norstat on behalf of Storebrand.
‘I’ve seen statistics that show more retirees struggling with payment problems now than they were before. It indicates that many took up short-term loans without fully understanding the consequences`, said Emeritus Professor Tor Busch, at the Norwegian University of Science and Technology (NTNU).
He believes many retirees underestimate how much lower their income will become in retirement.
The Pensioners’ Association have received support from NAV in creating an economy phone service that provides financial advice for retirement.
‘We recommend retirees to use this service, which is free and independent’, said communications manager, Kristin Ruud, of the Retirement Association.
Source: NTB scanpix / Norway Today