Norway lacks 1.200 billion pension

Paal BjørnestadState Secretary Paal Bjørnestad Progress Party.Photo: Berit Roald / NTB scanpix

Norway lacks more than 1.200 billion to get the state pension funds in balance with the state’s pension obligations.

Since January, the coverage increased by 400 billion, stated the Financial newspaper.

There are low interest rates, strong immigration driven population growth and public performance pensions that means future generations must take responsibility for a larger share of pension costs.

– We will in the decades ahead face significant challenges in fiscal policy as a result of an aging population.

Even without further expansion of publicly funded welfare is public spending probably higher government revenues, said State Secretary Paal Bjørnestad to  Finance newspaper.

The Government Pension Fund consists of two parts: the oil fund, which as of Monday was worth 7.300 billion, and Folketrygdfondet which manages 200 billion.

Furthermore salary obligations for retirement through national insurance and state pension fund are more than 8.700 billion.

These obligations are not funded, but paid in advance from the state budget when people retire.


Source: NTB scanpix / Norway Today