Yet another article saying we should copy our Scandinavian friends on some of other public policy.
The Norwegian Sovereign Wealth Fund which was started in 1990 is now worth $US600 billion. Its income comes from taxes on oil companies, exploration licence fees, and dividends from the state-owned Statoil. Norway is thinking of future generations.
Sounds like they’ve got lots of money. Yet the value of Australian Superannuation assets is $1.4 trillion. Depending a vagaries of the exchange rate that is double the amount Norway has.
The article also carries on about the pension.
We can expect another one million boomers to draw on the age or disability pension over the next 20 years.
The so called ‘generation Y’ and those born after them will be taxed to build infrastructure projects and support the ageing boomers while saving for a home and paying off HECS debt. Where’s the fairness in that?
Damn welfare system – taking from the young and healthy and giving to the old and sick. Like nobody thought that would ever happen. I have little sympathy here; this is not a bug, this is a design feature so I don’t understand why people who generally support the welfare state are now complaining about it being ‘unfair’.
Remember that the Australian pension is flat and means tested. How does the Norwegian pension work?
All Norwegians citizens are entitled to get a state pension from the age of 67 in accordance with the Norwegian National Insurance Act (Folketrygdloven). The state pension is paid in full to Norwegian citizens who have lived in Norway for at least 40 years after the age of 16 and in lesser amounts to Norwegian citizens who have lived less time in the country (see Minimal state pension (Minstepensjon)).
The State Pension is calculated according to what the individual has previously earned from ages 16 to 67. The calculation is made by The Norwegian Labour and Welfare Administration (NAV).
The financing of the state pensions is based on a “Pay as you go” system. This means that today’s work force is making the payments for the current retirees. The demographic structure in Norway suggests that in the future there will gradually be significantly fewer persons working in proportion to each retired pensioner.
Not means tested and not a flat rate.
Oh dear. Looks like those Norwegian Gen Ys are worse off than their Australian counterparts. They have half the money in their fund than Australians have in superannuation and Norwegians have a more generous pension scheme. So I’m not sure what it is we should learn from Norway.