Pension account applies to those who work in a private company that has a defined contribution pension. If you do not respond by 1 May, the current pension and previous defined contribution pensions (pension capital certificates) will be automatically merged.
In norskpensjon.no, everyone can check what kind of pensions they have.
The government’s goal with its own pension account is first and foremost that employees will receive more pensions for every kroner saved, through a lower fee for administration and management.
– We also want to give employees a greater overview, freedom of choice and ownership of their own pension, says Minister of Finance Jan Tore Sanner (H).
He adds that a separate pension account will also lead to increased competition in the pension market. It will benefit customers through lower fees and greater freedom of choice in investing their own pension.
The system with its own pension account applies from 1 February for a total of 1.5 million Norwegians.
This does not apply to public employees, those who have moved out of the country or those who are unemployed. This also does not apply to employees with defined benefit pensions or previous paid-up policies.
It is estimated that consumers will save up to NOK 800 million each year with the pension account system.
– The consumers who want to earn the most are those with more pension capital certificates. It has long been a problem that the administration fees associated with small pension capital certificates eat up the gain from saving. Now most administration fees will disappear, says director Jorge Jensen in the Finance Portal at the Consumer Council.
Employees with a pension account will probably enjoy the conditions that the employer has negotiated. Still, it can be smart to consider the right to move you have.
– For many, there will be interesting alternatives. For example, to take the standard compensation with you and rather buy a cheap global index fund from a self-selected supplier, says Jensen.
Standard compensation is the fee the employer would have paid for your management if you had stayed with the employer’s pension company.
You can see the overview of all the fees at Finansportalen from Monday.
Nordnet is among several companies that offer pension accounts, and which will compete for pension customers.
As it is today, only one in four employees knows who their pension provider is with the employer, according to a survey by Nordnet. They believe that the pension account system will increase interest in pensions among employees.
– If you choose a management that is cheaper than what you receive in standard compensation, you will have the difference transferred to your own pension account. If you choose a more expensive management, you will have to cover the difference yourself, says savings economist Bjørn Erik Sættem in Nordnet.
The company Storebrand is among the companies that warn that they do not charge fees for the account.
– The only thing the customer pays is the management fee in the fund the customer chooses, says pension adviser Lars-Erik Eriksen in Storebrand. He points out that they, like several other banks, offer a flexible solution that provides access to a wide range of investments.
Employees now have the months until 1 May to decide. It is also possible to give your consent immediately via norskpensjon.no.
You can not reserve against getting a pension account. It is the merging of several pension capital certificates that you can reserve against.
If you have several employers with a defined contribution pension, you will receive a separate pension account for each employment relationship.
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