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Reader Question: When am I eligible for a Norwegian pension?

How long do you need to work in Norway before you qualify for a state pension, and when can you draw it out? Here's what you need to know. 

Pictured is a worker.
Here's when you can begin to draw a pension in Norway. Pictured is a worker.Photo by Simon Abrams on Unsplash

Norway’s pension system can be confusing at the best of times, as there are many different schemes, and you may be enrolled in more than one at a time. 

Essentially, they boil down to three types. These are the state pension, which is part of the National Insurance Scheme in Norway. After that are employer pensions for both private and public sector employees. 

These must either be contribution-based or benefit-based. It will be up to the employer to decide which pension they enrol you in. 

And finally, there is the private pension. This comes in the form of private savings invested into a pension fund. 

You can read about Norway’s different types of pensions in more detail here

When it comes to state pensions, you must have had pensionable income and/or have been a member of the National Insurance Scheme in Norway for a minimum of 5 years. 

While the retirement age in Norway is 67, you have the right to draw a retirement pension from the month after you turn 62 – if you have sufficient earnings.

It is up to the individual to decide if they want to continue working while receiving their retirement pension. Furthermore, you have the discretion of choosing when and how you would like to draw your state pension.

You need to contribute to the National Insurance Scheme for 40 years or more to get the full minimum pension level in the country.

If you haven’t worked for 40 years, the pension level will be reduced accordingly. In most cases, you can take your Norwegian state pension abroad with you. 

Generally, a pension from employers is paid out from age 67; however, in some cases – especially in the public sector – employees may have the right to early retirement.

Remember that your occupational pension payments depend on multiple factors, including the period over which the pension will be paid out and the amount saved for you. In addition, whether you are eligible to take the pension to another country will depend on your employer’s selected pension provider. 

 When you are able to start drawing a private pension in Norway will depend on the agreement you have set up with the bank or financial institution you are saving with. 

READ MORE: Can you claim your Norwegian pension from another country?

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MONEY

How Norway has become cheaper for tourists

The recent drop in Norway's price level has made it a more appealing destination for tourists looking to visit Scandinavia without breaking the bank.

How Norway has become cheaper for tourists

Norway has long held a reputation for being one of the most expensive countries in Europe.

From sky-high prices for everyday items like groceries and dining out to costly accommodation and transportation, Norwegian prices often raise eyebrows among visitors and newcomers.

READ MORE: What will be cheaper and more expensive in Norway in 2024? 

The perception of Norway being unbelievably pricey is not unfounded; historically, its price levels have consistently ranked well above the European average.

Recent figures, however, indicate a potential shift in this dynamic.

The latest EU price statistics

In 2023, Norway’s price level was 25 percent higher than the average in EU countries, according to preliminary figures from the European purchasing power survey.

This marks a significant decrease from the previous year, when Norwegian prices were 43 percent above EU prices, as reported by Statistics Norway (SSB).

This decrease in price levels has implications for tourism.

As the cost differential shrinks, Norway becomes a more attractive destination for foreign visitors who may have previously been deterred by the high prices.

“The decrease in the price level in Norway compared to the rest of Europe has made it significantly more attractive for foreign tourists to holiday here with us.

“In return, it has become more expensive than before for Norwegians to holiday abroad,” Espen Kristiansen, a section manager at the SSB, said, according to the business newspaper e24.

Comparison with neighbouring countries

It must be noted that hotel and restaurant prices, which tend to be higher in Norway than in many European countries, still contribute to Norway’s overall high price level.

For these services, prices were still 43 percent higher than the EU average in 2023.

Comparatively, neighbouring Sweden’s prices were 14 percent higher than the EU average, down from 22 percent in 2022.

READ MORE: Five reasons why 2024 will be a good time to visit Norway

Denmark’s relative price level remained consistent, at 43 percent above the EU average, largely because the Danish krone is tied to the euro, unlike the Norwegian and Swedish currencies.

“Part of the explanation for the different developments in price levels in the Nordic countries is that the Danish krone follows the euro, unlike the Norwegian and Swedish ones,” Kristiansen said.

The most expensive country last year was Switzerland, with prices 74 percent above the EU average, according to the preliminary findings of the European purchasing power survey.

How a (relatively) weak krone also favours tourists visiting Norway

When travelling to Norway, tourists can still benefit from a favourable exchange rate (despite the currency’s recent uptick) even after taking inflation into account.

The weaker krone means visitors get more value for their money when exchanging foreign currency for Norwegian kroner.

READ MORE: How the weak Norwegian krone will affect travel to and from Norway

For instance, if a hotel room in Bergen costs 1,000 kroner per night, it would be around 88 euros at the current exchange rate. Three years ago, the same room would have cost approximately 100 euros.

Another example is dining out. A meal priced at 250 kroner (a main consisting of grilled salmon steak with vegetables, for example) is equivalent to 22 euros today, compared to 25 euros three years ago.

If you want a better understanding of how much cheaper a trip to Norway has become over time, you can use historical currency calculators to get a more exact estimate.

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