Pension, Pension deposit | Major change in pension:

And that’s introducing your own pension account. Starting January 1, 2021, around 1.5 million private sector employees will collect their pension income from current and former defined contribution pension plans into a separate pension account.

– What many people probably do not realize is that until now it is your employer who has made an assessment of the suppliers and has chosen them for you. The companies have negotiated an agreement with the pension provider.

– We are excited about the way customers are embracing this new scheme and if they take more active action, says Randi Marjamaa, Country Manager and Head of Retail Market at Nordea Norway.

Unless you make a reservation, this account will follow you through various working conditions and give you a better overview of your pension savings. The aim is also to reduce costs and increase the pension for each crown saved, but from next year you will have to choose where and how you want to save your pension.

Also Read: The Norwegians’ Forgotten Pension Bomb: – Completely Desperate For A Return

Very few actions

Marjamaa does not expect a storm in the new year from clients wanting to switch pension providers and collect pension capital certificates, but believes it will increase over time.

– The most important thing to decide is if you have the appropriate shareholding. Retirement savings are long-term money, so it’s important that you don’t have a low stake. We’ve experienced that 30-year-olds only have a 30 percent stake, and that’s not appropriate, says Marjamaa.

– No, and interest rates will remain at the current level for at least one more year, does it make sense to have the savings in the bank?

– We look at figures from the Norwegian Association of Securities Funds for November that there was a record fund underwriting. It was a turnaround in November. Clients like to start with a 30 percent stake, because it feels closer to a bank account, Marjamaa responds.

Also read: Erna Solberg robs Norwegian retirees

Very strict

– This is also very strictly regulated. We need to map clients’ understanding of risk and the time horizon they have, to make sure clients understand what they are going through.

But in the crown year 2020, even bigger problems have emerged, high unemployment. NHO chief Ole Erik Almlid recently feared that we will have a delayed bankruptcy wave, that this year’s encouraging numbers will be replaced by much worse bankruptcy numbers in 2021.

A survey conducted by Norstat for Nordea shows that 3 out of 10 are afraid of losing their job and, consequently, 7 out of 10 are not. In general, job fears are higher in women than in men.

The Norstat survey also shows that 40 percent want to save more in 2021. Marjamaa says the experience is that they saved a lot in 2020, but at the same time we have spent more on hobbies, houses, things related to the home.

– It is a very divided, the crisis of the crown affects very differently, some feel better, while others notice the uncertainty, says Marjamaa.

Also read: Turn off the pension alarm: – Many people receive a shock

Amazing

– Are you afraid that the default will come in the future, because there are always delays in this type of crisis?

– So far, it looks good with surprisingly few bankruptcies, and no, it doesn’t. We are much closer to customers in this round than we were in the spring, but we see that the issues have become more complex and customers have less to eat.

– But someone may have to cut consumption, get rid of the caravan or sell the car, and then it comes down to how long they think they are out of work. Some lose their jobs as a result of bankruptcy and have to change employers, for others it is a change only for a period.

30 percent respond in the Norstat survey that they have received better advice in 2020, 30 percent unchanged, but four out of ten have received worse advice. Many have been supported and many have done their best to deal with the current situation.

Dialogue

– How do you work with those who struggle to pay back loans as they should?

– We have our own team that looks at the applications, and in some cases there is an advisor who sits with the clients.

This fall, the number of Nordea customers who have been granted a grace period has doubled compared to normal. But Marjamaa says the 3,500 number is still at a low level. Nordea has hundreds of thousands of retail clients.

– We grant a grace period of three or six months and renew it for those who have had it before. But we see a new group that has not had special problems and should have a grace period for the first time. They are the ones who have lost their jobs or been laid off.

Also read: Nordea verified the difference between men’s and women’s pensions. What they found surprises the financial peak

You must reduce consumption

– These are borrowers who have eaten up their reserves and, therefore, have to consider consumption to make ends meet.

She promises that there will be no adjustments to her credit policy next year. Nordea’s boss says they had more leeway this spring, when authorities adjusted the waiver quota, so they could grant a grace period quickly without documentation. It is now adjusted again.

Marjamaa points out that those who have ended up in a slightly more demanding situation work in the tourism and hotel sector, among other things. The taxi industry has also struggled during the fall, as a result of reduced nightlife and canceled Christmas dinners.

– And then we have nurses who have been able to take shifts in various institutions before, but now can only work in one place as a result of the infection situation. Therefore, they lose income.

Big savings

– On the other hand, we have those who benefit from the fall in interest rates. In total, we spend less money, our macroeconomists have said that the corona pandemic has meant that the population has saved 100-150 billion crowns. The suggestion is that there may be a shopping party in the summer of next year, says the director of Nordea.

Although interest rates are projected to rise in the future, only 5 percent of Nordea’s loan clients have chosen to lock down interest rates. Despite new interest rate signals from Norges Bank, Marjamaa doesn’t believe in any particular hike.

– No, there is very little activity here. Nor have we seen a significant increase in the number of people paying off their debts in an extraordinary way.

Continuous price growth

Nordea has supported a normalization of mortgage regulations, but has opposed the tightening proposal, from Finanstilsynet. Among other things, the audit wanted to reduce the maximum debt ratio from 5 to 4.5 times revenue.

– We do not believe that everything has been taken out of the growth in prices in the housing market and we anticipate a growth in prices almost a year, but towards the end of the year it will stabilize a bit.

– So in general, are you optimistic for next year?

– Yes, we are optimistic. There have been such strong signals about the vaccination schedule that potentially a large proportion of the population can get vaccinated in May. In that case, we can get a tipping point in the pandemic this summer and a usable speed in the economy again, Marjamaa responds.

– But some will stay and we will have to readjust,

Nordea believes that socializing in 2021 will increase, which means more people at concerts, more nightlife and, to some extent, more people traveling.

– But companies will probably take longer, because they have seen the benefits of holding meetings through Teams. There will likely be more lasting changes here, predicts Marjamaa.

Advertising

10 bargains you make at Christiania Glasmagasin