Norway will face a fast maturing old age pension scheme over the 30 next years whereas oil revenues
will supply only a part of implicit liabilities related to the present generation. This working paper
examines the recently proposed new measures to strengthen long term fiscal sustainability in Norway.
Even though a broad agreement was reached in the parliament on the proposed principles of pension
reform, crucial elements are still under discussion, among these the decision on a flexible retirement
age based on actuarially fair notional accounts and the strength of the link between income and
benefits. Estimated savings arising from strengthened work incentives introducing a longevity
coefficient and less generous indexation are three percentage points of GDP over the long term
compared to an expected nine percentage points of GDP financing gap for welfare spending. For the
proposals to have maximum impact, public subsidies to existing early retirement schemes should be
removed and eligibility for disability pensions and long-term sick leaves tightened.
This paper relates to the 2005 OECD Economic Survey of Norway (www.oecd.org/eco/surveys/norway).
The Ageing Challenge in Norway
Ensuring a Sustainable Pension and Welfare System
Working paper
OECD Economics Department Working Papers
Share
Facebook
Twitter
LinkedIn
Abstract
In the same series
-
Working paper20 September 2024
-
5 September 2024
-
5 September 2024
Related publications
-
30 July 2024
-
Country note10 July 2024