The baby boomers are getting ready to retire, which means that the annual expenditures for pensions in the Norwegian state budget are in for a dramatic increase.
The Norwegian economy is starting to feel the effects of the large elderly population born right after the 2nd World War – the so-called baby boomers.
From now until next year, the state budget will experience an increase of NOK 8 billion for pension expenditures, and between 2014 and 2015 the number will rise by NOK 24,5 billion.
"Of course it will be challenging," Finance Minister Sigbjørn Johnsen said to NRK. "It means that we have to get better at prioritizing expenditures in the state budget than what we have been."
Some of the challenges mean that today’s youth will not be able to retire as early as the baby boomers, suggests the Financial Spokesperson of the Conservative Party (Høyre) , Jan Tore Sanner.
"The circumstances indicate that the younger generation and their children will have to work longer, simply because we know that there will be more retirees and fewer people working," Sanner told NRK.
This year, 35,000 accepted Flexible Retirement Pensions as opposed to 19,000 last year. The program is supposed to give people more freedom in choosing when to use their pension, and many combine it with work, or choose to retire early.
The Liberal Left Party’s leader Trine Skei Grande feels that the figures are a good reason to question the plan, whereas Torgeir Michaelsen, leader of the Labour Party’s Financial Committee, interprets the increase in retirees as a good sign. "It shows that people appreciate the flexibility the pension plan offers, he says.
(NRK) Picture NRK
Written by Julie Ryland
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