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Can you claim your Norwegian pension from another country?

If you have worked in Norway for at least three years after turning 16, you are likely to be able to claim a pension even if you now live elsewhere.

Here's how you can claim your Norwegian pension from another country. Pictured is a plant growing out of a money jar to signal investments growing.
Here's how you can claim your Norwegian pension from another country. Pictured is a plant growing out of a money jar to signal investments growing.Photo by Towfiqu barbhuiya on Unsplash

In Norway, residents are eligible for three types of pensions. The two main pensions to be aware of are pension payments from the Norwegian National Insurance Scheme and any pensions from employers you will have accumulated. There are also private pension savings that you invest into yourself. 

As a foreigner in Norway or a Norwegian looking to retire elsewhere, these pensions can be claimed if you no longer live in the country, but certain rules apply.

Through the Norwegian National Insurance Scheme

Anyone who has legally worked in Norway for at least three years after turning 16 is entitled to a retirement pension from the Norwegian National Insurance Scheme (Folketrygden). This also includes those who have tax residency in the country.

For each year of employment, 18.1 percent of your wages are transferred to your pension account.

The size of your pension, which you can choose to start receiving the month before your 62nd birthday and up to age 75, will depend on several factors, such as how long you have been a tax resident of Norway and contributions to the National Insurance Scheme. To draw your pension from just before you turn 62, you will need to have accumulated a sufficient pension fund.

To receive the full Norwegian state pension or retirement pension, you will need to have resided in Norway for 40 years. For those who have not lived there for 40 years, their pension is reduced proportionally. For example, those who have lived in Norway for 25 years will receive 25 ‘fortieths’ of the full state pension.

You can read more about the specifics of retirement pensions from the state here

How to claim

The retirement pension can be claimed from the Norwegian Labour and Welfare Administration (NAV), but there are some rules. If you are moving or have moved to a country within the EEA or one with which Norway has a social security agreement, you can continue to receive your pension (unless you are a refugee or receiving a pension with a young disabled person supplement).

You will also need to fill in the application form. You can take a look at the form here

If you are moving to or living in a country outside the EEA or one that Norway doesn’t have an existing social security agreement with, then there are different rules depending on your age which you can read about here

Essentially, if you were born before 1954, it will be pretty difficult to claim your pension from another country. The main rule to be aware of is that you will need to have lived in Norway for at least 20 years.

If you were born after 1963, there are no requirements for how long you will need to have lived in Norway to draw your pension from another country.

If you were born between 1954 and 1963, you can draw your pension from a country outside the EEA, which Norway doesn’t have a social security agreement with, which would be calculated based on a mixture of the two different rules.

You can check any pension you have accumulated through the Norwegian National Insurance Scheme through NAV’s Din Pensjon portal. It also includes a basic pension calculator.

You will need an electronic ID to sign in.

How to get paid

If you still have a Norwegian bank account open, NAV will make payments there as this is the quickest and easiest option available. 

If you have a foreign account, payments can be made to a bank in your country of residence, typically in local currency. However, some fees will apply, and all payments are made using the latest exchange rate at the time of payment. 

Significant fluctuations in currency strength can also affect the size of your payments. You can read about receiving payments into a foreign account here.

You can check your pension and change your bank details with NAV here and look at payment dates here.  

Private pensions

Employees in both the public and private sectors are also covered by some form of occupational pension scheme. 

If you have worked in Norway, you will have therefore earned occupational pension through your terms of employment. For most employees, this will be paid from the age of 67.

There are two types of occupation pensions: Defined benefit pension plans and defined contribution pension plans.

A defined contribution scheme means your employer saves a percentage of your salary each month. This will appear on your payslip. This, as a minimum, is 2 percent.

A defined benefit pension will typically give you two-thirds of your salary when you retire. The sum of your pensions will be what you are entitled to through national insurance contributions and the pension you will have accumulated from your employer. This typically only applies to public sector employees.

You should contact your current and previous employers to find out what schemes you are enrolled in for more information on this. 

To determine what you may or may not be entitled to if you move away from Norway, then you will need to contact the pension company responsible for your occupational pension should you up sticks to elsewhere. If you are still working in Norway, consider moving to a pension plan that allows you to draw from the fund whether you are planning or dreaming of moving to.

The pension firms will also have more information on how to receive payments and what options are available.  

Depending on your employer and circumstances, you may also be entitled to an early contractual retirement pension (AFP). An AFP pension is an early retirement pension that you can receive between 62 and 67. The rules for drawing this pension while abroad are slightly different from state and private pensions. You can read more about it here.

Typically, only public-sector workers are entitled to AFP pensions. 

Those who have invested into a private pension will need to check with the relevant company for more information about countries to which they will make payments. 

Tax implications? 

One last thing to note is that if you are drawing a pension in another country, you will need to get in touch with the local tax authorities to find out any implications of receiving the pension and whether it will be considered a taxable income or not.  

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MONEY

What are the best savings options in Norway?  

Having some money set aside for a rainy day is always smart. Luckily, there are plenty of options available in Norway. However, what's best overall may depend on your situation. 

What are the best savings options in Norway?  

After your rent or mortgage, taxes, bills, and other monthly expenses are covered, you should hopefully have some money left over to put into savings and plan for your future. 

Whether you’re thinking of a rainy day fund, a nest egg, or money to put towards a home, Norway has plenty of options. 

What’s best overall will depend on your own needs. For example, if you want flexibility, you’ll want an account that allows you to make deposits and withdrawals whenever you wish. However, if you want a good rate, you’ll likely need to pen the ink on an account restricting withdrawals. 

For the best returns, look further ahead with a savings account that invests in stocks. These accounts deliver the best returns after around ten years. 

If it’s a house you’re after, you may want a BSU account. 

READ MORE: The key things you need to know about savings accounts in Norway 

The best rates come with strings attached

In terms of the best interest rates, BSU accounts typically offer the best returns. The Boligsparing for Ungdom (BSU) accounts have interest rates of around 6-6.5 percent at the time of writing. 

However, these accounts come with a catch. First, there are limits on how much you can invest per year, second, there are age restrictions, and third, the accounts can only be used for housing-related spending. 

Flexibility 

When it comes to savings accounts with more flexibility, there are several options. 

Buffer accounts (bufferkonto) are savings accounts that allow you to save up for unforeseen circumstances, such as an unexpected bill. Typically, these accounts aren’t expected to be the main savings pool. 

You can normally open these accounts without being an existing bank member, meaning you can shop around for the best rate. As these accounts are supposed to act as a buffer, you can make deposits and withdrawals as frequently as you need. 

These accounts will typically have rates comparable to savings accounts that don’t require a minimum monthly deposit and allow flexible withdrawal. 

At the time of writing, these accounts pay between 3.7 and 4.7 percent annual interest. 

For the medium term 

Some savings accounts offer slightly higher interest, but they may restrict or charge deposit fees. 

Other restrictions, such as being a bank customer, having a mortgage with it, or being a union member, may also apply. 

In a recent survey on banking among readers, a number said that union membership offered them competitive rates with savings accounts. Meanwhile, OBOS, Norway’s biggest housing association, also offers a high-interest savings account. 

Fixed-interest accounts may also offer an attractive option in the medium term. While interest rates in Norway are currently high, they are expected to fall in the coming years, so you may wish to consider a fixed interest rate account. 

Banks typically offer fixed interest for 1-3 years. The longer the rate is locked, the lower the overall rate. Therefore, it may be worth calculating whether you can expect to be better off overall by signing up for a fixed rate rather than going with the flow. 

These accounts typically offer rates a percentage point below flexible accounts.  

Longer term 

Those with an eye on the future could put even more money into their pension accounts. Typically, you will already be paying towards a state pension and workplace pension scheme in Norway. 

However, you can also invest in an IPA, individual pension account. The Sparebank group typically offers the best rates on these. At the time of writing, anywhere between 3 and 4 percent is considered a good rate. 

If you intend to save for longer than three years but don’t want to wait until retirement, consider putting some of your savings into a fund. In the longer term, these typically offer better returns than a bank. 

An index fund (indeksfond) is considered the easiest and cheapest to invest in. The cheaper the fund, the less it will affect returns. 

Mutual funds (aksjefond) are more actively managed but have higher costs. 

Then you will need to consider the scope of the fund. A more global fund will, generally, have lower risk.

Such funds are risky. Stock markets rise and fall, and over ten years, there is no guarantee that they will outperform a savings account. 

Some banks like DNB offer a combination of traditional savings and investment into funds. They offer accounts where anywhere from 30 to 100 percent of the money will be invested in shares while the rest will sit in a savings account. 

Such accounts also allow savers to choose the level of risk they are comfortable with.

If you are saving large amounts, then you may be subject to a tweak to the exit tax rules should you relocate from Norway. 

READ MORE: What we know so far about Norway’s plans for an exit tax

Where to check for the best rates 

When looking solely at savings accounts and not funds, then Finansportalen from the Norwegian Consumer Council will be an essential tool. 

It allows you to input the type of account you’re after, the money you expect to deposit and your age. From there, it will list the most important T&Cs of the accounts and order them from the best rate to the worst. 

You can also filter out banks that require you to already be a customer or take on other products. 

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