The government has counted on pension proposals – warns billions upon billions – NRK Norway – Summary of news from different parts of the country

– We know that the cost of carrying out the measures proposed here will be NOK 5 billion next year. But in 2050 it will be 46 billion crowns, says Henrik Asheim (H), Acting Minister of Labor and Social Affairs.

A little warning before reading on. Here come many important numbers. But you should get an explanation on the way.

Poverty line

Because large numbers are important. It’s about what you or your children and grandchildren want to experience as retirees. The big numbers were up for discussion when Storting politicians met today to discuss increasing pensions.

One of the questions is: Can we afford to improve the income of the poorest minimum pensioners if the bill increases from 5 to almost 50 billion a year?

The starting point of today’s talks is that SV and Frp want it. The two parties have joined in an unusual alliance to improve pensions. And there are two important points that cost a lot of money in the proposal.

• Old-age pensions will be adjusted by giving pensioners an average growth in prices and wages every quarter of a year. There are many indications that this may be approved by the Storting.
• Norwegian minimum pensioners must receive at least what is the EU definition of poverty: 60 percent of the country’s median income. More discussion is expected here.

There are about 140,000 minimum pensioners in this country. The number has decreased in recent years, but those living on a minimum pension are in a difficult situation, according to an analysis by Statistics Norway that was published last year.

The proposal to increase the minimum pension alone will cost about 5 billion next year. But the government is much more afraid of the long-term consequences. Because that’s when the big expenses come.

Henrik Asheim (H) works as Minister of Labor and Social Affairs, while Torbjørn Røe Isaksen has paperwork. And Asheim comes with a strong warning that the bill for the proposed minimum pension will be up to $ 46 billion annually in 2050. This shows in the ministry’s calculations.

– Young people today should also know that they receive a good pension. So the costs can’t be that high, says Asheim.

40,000 more to route with

Under the current system, a single minimum pensioner receives NOK 204,690 in pension per year. It will definitely look a little better on the bank account if SV and Frp pull it off.

The government has calculated that a single pensioner must have an additional 41,000 crowns in pension to reach the EU poverty line of 245,000 crowns a year. This is indicated in the calculations that the government has submitted to SV and Frp.

For the minimum married and cohabiting pensioners, the annual pension will increase by just over 25,000 NOK for each.

The reason why the cost of this, according to the government, can grow to NOK 46 billion, is that there will be many more pensioners in the coming years and more will receive a minimum pension which will then be of a higher level.

The government has assumed that all retirees will continue to have secure incomes above the EU poverty line in the future.

– I think SV and Frp think this will apply to minimum pensioners also in the future, so we must calculate from that, says Asheim. – Costs will increase because there will be more pensioners and fewer employees.

Now deepen the day in the drawers

But Audun Lysbakken from SV doesn’t hear that ear.

– It will cost to get rid of poverty among the elderly, but much less than what conservatives have spent on tax breaks, which has especially benefited the wealthiest. This is a reverse distribution policy, it is correct and important.

You will not immediately accept that the 30-year estimate with billions of uncertain expenses is correct.

– Now the government rummaged through its drawers after an argument to do nothing about poverty among the elderly today. I do not want to attest to all the figures that the Conservatives throw today, but I wonder if the Conservatives are first and foremost a record of throwing all the possible figures on what we No can do.

Labor Party leader Jonas Gahr Støre says the Labor Party will support the part of the proposal that deals with the annual regulation of old-age pensions. The minimum pension is a bigger problem.

– We will discuss the other proposals, both what they mean and how we should handle them, says Støre.

FRP leader Siv Jensen emphasizes that there are issues as important to discuss as the total cost of the minimum pension proposal.

– Of course it costs money. The question is how we should design it so that it is perceived as fair and livable for the country’s pensioners.

– Does the government really think that if we give this minimum pension now, then we will not be able to pay pensions in the future?

– Well, we can pay for it, but we can pay for it. worst pensions in the future, says Henrik Asheim.