Early withdrawals lower pensions – ABC News

– Many have chosen to take out retirement as early as possible. This allows the youngest pensioners now have significantly lower annual payments than the older veterans, says section director Ole Christian Lien.

The statistics from Nav shows that at the end of the first quarter was 844,800 old age pensioners. Of these, 84,100 aged 62- 66 years. They now account for three out of ten of the population in this age group.

Long-term effect

In case of early withdrawal spreading pensioners payments over a longer period. Thus, the annual pensions lower.

It has led to the age group 62-66 years have the lowest annual pensions for both women and men. Average annual retirement is now about 205,500 kroner for this group.

– The effect of early withdrawals has also begun to affect the older age groups. Male age pensioners aged 67 to 69 years now has lower average pensions than those aged 70 to 74 years, said Lien.

Earlier, younger retirees had better and longer vesting, and thus higher average pensions. But flexible withdrawal has made this trend is reversed.

– In the short term this does not give much reason for concern since many combine pension with work. But in the longer term, we can get a large group of elderly with significantly lower incomes than today, says Chief.

Fewer and fewer minimum pensions

Despite the fact that the average age pensions reduced due early withdrawals, continue number of minimum pensions going down.

The proportion of minimum has fallen from 30 to 17 per cent in ten years, and we now have for the first time under 150,000 minimum pensions.

For pensioners aged 67- 69 years, the percentage of minimum pension decreased from 23 to 5 percent. The declining share due to new pensioners today have better and longer vesting than previously, according to Nav.

In addition, conditions for early withdrawal of retirement that they only have the right to the minimum, not have the opportunity to withdraw pension before the age of 67 years. Thus, do not get this group lower pensions as a result of early withdrawals.