Politicians have ensured that almost 1 million pensioners receive an increased pension and post-paid pension from this spring.
This good news for the pensioners comes after this year’s social security settlement has been carried out again.
The Storting decided earlier this year that old-age pensions under payment should have an annual salary increase in 2021 of 3.83 per cent. The regulation of pensions therefore had to be implemented again.
– Nearly one million pensioners now receive an increased annual pension and post-payment back to May, says Minister of Labor and Social Inclusion Hadia Tajik (Labor Party) in a press release. Everyone who has a pension above the minimum level also receives an increase in the annual pension.
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1600 kroner
The changed social security settlement means around NOK 1,000 more in annual pensions for the individual. In addition, pensioners can look forward to a post-payment from May-November of about NOK 600. The Storting has allocated 650 million in this year’s budget for this increase.
The monthly payment is increased for most people from December. In December, a post-payment is also paid for the special increase for the period May – November.
Tajik emphasizes that this is to be considered a transitional arrangement. In future, pensioners must adjust to their pension payments, which are regulated by the average wage and price increase.
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High inflation
At present, inflation is high, 3.5 percent, and higher than the assumed wage growth this year. If we look at them, for example latest forecasts from Norges Bank, they predict a total price increase in the coming years in the area of 1.2-1.9 percent.
Wage growth is expected to be just over 3 per cent. Given the forecasts from the central bank, pensioners can expect an annual growth in future payments of 2-2.5 per cent.
The re-regulation for 2021 is a result of 2021 being a transitional year between the old rules and the new rules. Next year, the new schemes will be introduced.
– I am happy that from 2022 we will have a new regulation system in place that is safe and predictable. This ensures that pensioners do not go in the red when employees go in the red, says Tajik in the report.
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Low and high rate
And what does this give in total payments? Yes, the rates from 1 May 2021 are set at NOK 167,125 for a low rate. This rate is given to those who live with a spouse who receives a retirement pension, AFP in the public sector up to the age of 65, or AFP in the private sector with withdrawals before 2011.
Pensioners who fall below the ordinary rate can look forward to NOK 193,429, those with a high rate of NOK 203,545
From 1 July 2021, the special rate for single people increased by NOK 5,000. This is in addition, so that the rate here from 1 July is NOK 224,878.
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