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Ageing and Employment Policies: Norway 2013

Working Better with Age

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This report provides an overview of the substantial ageing and employment policy initiatives already implemented in Norway over the past decade and identifies areas where more should be done, covering both supply-side and demand-side aspects.

To give better incentives to carry on working, the report recommends further reforms in the second-pillar pension schemes, particularly for public sector employees. On the side of employers, it is important to progress towards more age-neutral hiring decisions and to review of age limits for mandatory retirement.

To improve the employability of older workers, the focus should be to promote job-related training with a particular focus on mid-career workers and to encourage initiatives based on a full-time culture and good working conditions for all.

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Making work rewarding for Norwegian seniors

Prior to the 2011 reform, the pensionable age in Norway was 67 – yet a large share of employees left the labour force before that age, mainly via disability benefits or the Contractual Early Retirement schemes (AFP) implemented in the late 1980s. In 2010, 58% of the population aged 62-66 received a pension; 35% of that share received disability benefits and 20% AFP. This chapter analyses Norway’s actions to strengthen financial incentives to carry on working, including reform of its old age pension system and early retirement schemes.

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