Norway is experiencing a demographic trend where the proportion of older people is increasing while the proportion of working people is decreasing, putting pressure on the pension system and other welfare schemes, Norwegian pension company KLP has said.

Norway's new pension rules for public occupational pensions came into force on 1 January 2025, designed to ensure individual flexibility and financial security, but also reflect a crucial societal perspective.

KLP head of working life, Vibeke Os Bratlie, said that this applies to the entire municipal and health sector, but has become particularly relevant for municipalities that have a high proportion of older residents and where the need for health and care services is increasing rapidly.

Meanwhile, KLP said younger generations, who are expected to live longer, will also have to work longer to achieve the same pension as older generations.

“The hope is that if we manage to extend professional careers, we can reduce the pressure on public pension schemes and maintain the level of benefits we have today,” Os Bratlie said.

Additionally, she emphasised that having enough competent employees in these sectors is “crucial” to maintaining the quality of services.

“They contribute expertise, stability, and experience that make them less likely to be swayed from their position. Many seniors also find joy and meaning in remaining employed, either full-time or part-time,” she said.

However, KLP noted that knowledge transfer to younger colleagues is also important.

The company offered the example that an experienced nurse does not only provides good patient care but can also train younger colleagues in demanding situations.

Os Bratlie said that there is no doubt that Norway needs more experienced people in the workforce, but it is also important to value experienced colleagues and rethink how to use their expertise in the best possible way.

In order to achieve this, KLP said it is important that employers play their part to retain their employees, including by showing that they are valued, as research suggests that not acting on this can push workers into retirement earlier than they initially intended. 

The company suggested that in performance appraisals, employers should look at a range of elements such as competence needs, development opportunities, and plans for later careers.

In addition to this, it also said workplaces that look after the elderly contribute to creating an inclusive and productive work environment, with studies indicating that a good work environment and good colleagues are among the most important things for these employees. 

KLP said it is also important for workers to know that it is financially beneficial to stay in work longer and that the longer savers wait to take out their pension, the larger it will be.

In addition to this, it highlighted that the new pension rules allow savers to combine work and pension to a greater extent than before.

“We simply have to stay in work longer to ensure a sustainable pension system and maintain the welfare society,” Os Bratlie said.

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