Individual Pension Savings Scheme
Individuell pensjonssparing, IPS
Coverage
Voluntary insurance
- All individuals above the age of 18.
Financing
General finances
- Fully funded personal pension plans based on personal contribution payments and capital revenues.
Contribution payments
- Persons provide contribution payments and decide upon its amount individually.
- Maximum of NOK 40,000 can be saved per year.
State support
- Tax deferrals available, subject to conditions (currently up to NOK 8,800 per year).
Administration
- Pension plan providers manage pension funds and pay benefits directly to person.
- Norwegian institutions and institutions in the EEA are eligible.
Qualifying Conditions
- To quality for tax deferral, the payment of pension can start no earlier than at 62 years, and the pension must be paid for at least 10 years and until the individual has reached the age of 77.
Benefits
Pension payments
- Accumulated capital through contribution payments and investment yields, minus administration costs/fees of pension plan provider.
Taxation and social security contributions on pension payments
- Pensioners pay reduced social security contributions (5.1%, compared to 8.2% for employees).
- All pension income is subject to taxation; a tax reduction of up to NOK 30,000 is granted to pensioners.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Voluntary insurance
- All individuals above the age of 18.
General finances
- Fully funded personal pension plans based on personal contribution payments and capital revenues.
Contribution payments
- Persons provide contribution payments and decide upon its amount individually.
- Maximum of NOK 40,000 can be saved per year.
State support
- Tax deferrals available, subject to conditions (currently up to NOK 8,800 per year).
- Pension plan providers manage pension funds and pay benefits directly to person.
- Norwegian institutions and institutions in the EEA are eligible.
- To quality for tax deferral, the payment of pension can start no earlier than at 62 years, and the pension must be paid for at least 10 years and until the individual has reached the age of 77.
Pension payments
- Accumulated capital through contribution payments and investment yields, minus administration costs/fees of pension plan provider.
Taxation and social security contributions on pension payments
- Pensioners pay reduced social security contributions (5.1%, compared to 8.2% for employees).
- All pension income is subject to taxation; a tax reduction of up to NOK 30,000 is granted to pensioners.
Legal Basis: Act on Individual Pension Saving Plans (Lov om individuell pensjonsordning).