Norwegian pension system 'redesign'
The Norwegian government has floated a re-design of the tax and pension systems in the face of an ageing society that will see a surge in pension expenditures as a share of GDP.
“The design of the tax and pension systems are central to increase
the economic rewards from
working,” the finance ministry said in a statement.
The ministry has released a white paper on the challenges and options for the Norwegian Economy.
“Over the coming decades, ageing will lead to a strong increase in public expenditures, including pensions,” the ministry said. “Based on Statistics Norway’s demographic projections, old-age pension expenditures are calculated to reach 16% of mainland GDP in 2060 if the present system is maintained, compared to 6% today.”
“To sustain today’s public services and meet future pension obligations, the public sector must deal with a gradually increasing financing gap.