Norway falling down the list for best pension schemes

Money Interest rate LånekassenMoney.Photo: Jon Olav Nesvold / NTB scanpix

An average Norwegian employee can expect a pension of only half his salary, according to a recent Mercer report.

According to the report from the Melbourne Mercer Global Pension Index, quoted by Dagens Næringsliv, an average Norwegian employee can expect a pension of 48.8 percent of their final  salary.

“I think this is something most people have not paid attention to, and I think it’s a challenge that there are also so many  who are not interested in looking into it ,” says Per Myklestu, CEO of Mercer Norway.

Tor Sydnes in the pension management and consulting company Gabler, emphasizes that this applies to the private sector and not the public sector.

“The figure they refer to, that an average employee can expect about 49 percent of his salary in retirement seems reasonable,” says Sydnes.

It is the scheme of occupational pensions through the employer, who is not obliged to pay more than two percent of the salary into the retirement fund, that makes Norwegian retirees worse off than in other countries, DN writes.

The survey ranks the pension schemes in 34 countries based on more than 40 criteria. Norway fell from fourth place to sixth place in 2018, behind Denmark, Sweden and Finland.


© NTB scanpix / #Norway Today