Although the pension increased by an average of 4,2 percent. in 2021-2022, prices have increased even more. As a result, pensioners had an average of 1,5 percent. less purchasing power.
The average pension in 2022 was NOK 269. This is an increase of NOK 500 compared to the previous year. The increase was not enough to compensate for the increase in prices, explains NAV's head of department, Ole Christian Lien.
– 2022 was a year of extremely high price growth, not only for energy and food. The annual growth rate of the consumer price index ended at 5,8 percent. and this is the highest increase in over 30 years.
Pensioners are not the only ones experiencing reduced purchasing power over the past year. Preliminary 2022 wage growth figures from Statistics Norway (SSB) show that the average worker experienced a 1,3% decline in purchasing power last year.
Purchasing power expected to increase in 2023
In 2022, the amount of the pension was regulated by the average of the projected increase in prices and salaries. Growth in prices and wages was higher than expected last year. The principles of pension indexation are such that pensioners will receive compensation for this at this year's indexation.
“According to the forecasts of the Norwegian Statistical Office, this year the adjustment of pensions will be 6,4%, giving pensioners a 1,5% increase in purchasing power,” says Lien.
For individual minimum pensioners, the increase in purchasing power will be greater because minimum pension for this group has been increased by NOK 4000 from January 1. Here, it is expected that the pension will increase by 8,3%, which translates into an increase in purchasing power by 3,2%.
Some increase in purchasing power over the last 10 years
Over the last 10 years, the real value of the average pension has increased by 1,8 percent. The development is then adjusted for the price increase (KPI). Excluding price adjustments, the increase was 33,1 percent. (nominal development).
“In a few of the last ten years, pensions have increased more than prices, but there have also been years where price increases have been the highest, like 2022,” Lien says.
There are currently 1 retirees
At the end of December 2022, 1 thousand people received pensions. people. There are 018,2 thous. more than in December 16,8. The increase from 2021 to 2021 is 2022 percent. It is expected that in the coming years the number retirees will also was growing.
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Source: NAV
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