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This is the result of this year’s social security agreement. The government increases pensions by 1.2 percent this year.
At the same time, prices are estimated to rise 1.4 percent. Thus, pensioners lose 0.2 percent.
By comparison, industrial workers receive an average 1.7 percent more in wages, which will give 0.3 percent more to work for the regular employee.
Including retirees, 2020 has been in the red for five of the last six years. Last year was the positive exception, but now the crown crisis is leading to lean times again.
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Jan Davidsen from the Pensioners Association is on the warpath. He wants to end the alleged under-regulation of pensions.
A large majority in the Storting supports the principle enshrined in the major pension reform and which came into effect in 2011. It was stated here that pensions should follow the average of wage and price increases. Then, for convenience, it was decided that pensions should be increased 0.75 percent below wages.
The only problem is that this system will work well in good years, but this year the purchasing power of pensioners will be lost with meager allowances for employees.
To remedy this problem, the Labor Party proposed several years ago that the Storting should go back to intention, that is, give pensioners average price and wage increases. This would have given pensioners 0.15% more to spend on this year’s social security deal.
After all, a little more is better than going in the red.
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The problem with the Labor Party model, however, is that it will give retirees slightly less than the government alternative offers in good years.
The government has so far rejected the Labor model, but now Labor and Social Affairs Minister Torbjørn Røe Isaksen (H) says he is willing to consider this.
It should happen now, not be postponed until next year.
The Labor Party model will guarantee pensioners greater purchasing power as long as employees make a profit.
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