From Minimum Pension to Guaranteed Pension

The minimum pension applies today – Increasing life expectancy and retirement massive in a short period of time puts many states to the test. Between them, and Norway: the country with a rigid climate but with an optimum sanitary system and education and where crime is low. The pension reform does that the minimum pensionas it is known today to be replaced by a guaranteed pension. This one it will depend on the income and it will not be a fixed amount. Many experts point out that Norwegians who will retire will have a situation much worse than the present generations. They draw attention to the situation and demand an improvement in the regulation of minimum benefits and an increase in wages: only in this way will fewer people have to end up worse off. (Continue reading below)

The minimum pension applies today

“The only thing I’ve heard about pensions is mum and dad recently saying that they will start saving. But I didn’t think for a second to this”, says Eirik Arentz (18 years old) for NRK. It’s not the first topic they talk about when they meet, but he and his five colleagues knew they were going to stay less money and pensions for future generations.
Read also: Goodbye pension at 66! Those born in 1970 may retire at an unexpected age

“For us is stupidof course. We wish we had as much as the generation before us. But must let’s be a little realistic“, says Anton W. Fladmark (18). For now, recent government figures show that, in 2060close four out of ten Norwegians they will have an old age pension from national insurance, which is smaller than the current minimum level for single people. “The numbers show we’re headed for a historical accident of pensionsin which four out of ten of my generation will actually be minimum pensioners or worse, in 2060. I don’t think people realized how much the numbers are dramaticsays an expert for NRK.
Also read: How long must you have been married to receive a widow’s pension?

“The minimum pension applies today, but for my generation there is no minimum pension”

“Minimum pension applies to those living today, but for my generation there is no minimum pension. There is something called a guaranteed pension. And the only guarantee in it is that you can become very poor,” say young Norwegians. The old earning model still applies for those born in 1953 or earlier and partially for those born between 1953 and 1963. Specialists believe that the reform will end with a sudden deterioration of pensions. (CONTINUE READING)

The guaranteed pension represents a minimum income for those who they do not have their own accumulation pension. For whom build your own pension (income pension), 80 percent of the pension accumulation is intended to reduce the guaranteed pension. The effect in practice is that you “only” keep 20 percent of what you earned. It’s only when you’ve ‘topped up’ enough to bring your guarantee pension to zero that you get the full effect of your earned pension, he says the pension expert Alexandra Plahte.|
Also read: Pensioners in Germany – “Worst case scenario”. Figures that should not leave you indifferent

pminimum ency in Norway

The fact that your own earned pension not added to the guaranteed pension is in itself logical, because otherwise you would get very high pensions and – not least – there would be very high pension costs. Who currently benefits from the minimum pension In Norway receives between NOK 173,025 (approx. €15,000) and NOK 328,009 (€28,300). count if you are single or married and supporting a spouse. a retired single receives NOK 232,816 per year (approx. €20,000) minimum pension.

Legal retirement age in Norway It is for 67 yearsand accumulate pension rights when you work, anyway before you fulfill 75 years. If you move to another countryfirst of all you need to find out if you still belong to the national insurance system. You have an obligation to report pension authorities any change which can affect the pension.

In case of change your marital statusfor example, or want to stay abroad for a long time, this could affect payments which you receive from NAV. Thus, you must inform local pension office. In 2022, they were registered in Norway 16,029 Romanians. Source: nav.no