Lower Pensionable Age in Norway

In lowering the age at which a pension is payable from 70 to 67 as of January 1, lQi3, Norway introduced a flexible retirement test that is unique in social security legislation. The new test permits persons aged 67-60 who wish to continue working on a less-than-full-time basis to claim a partial pension if the sum of pension and earnings does not exceed 80 percent of former earnings. A similar but more liberal rule is in effect for low wage earners. Those who wish to do so may claim a full pension at age 67. For every month the pension is unclaimed until age SO, the value increases by 0.75 percent of the initial pension amount. Upon reaching age ‘70, the pensioner becomes entitled to a full pension regardless of other earnings. The new regulations also relax the rules governing retirement before age 67.1 The direct cost of the reforms will mean an estimated lo-percent increase in toal expenditures under the program in 1073.