Private occupational pension - what you need to know
An occupational pension is an important part of your future finances. Here you will get an overview of the three different schemes, what you should check when changing jobs, and how you as a NITO member can get the most out of your pension savings.
Private occupational pension is a pension you receive through your employer. It is in addition to the pension you receive from the National Insurance Scheme and contractual early retirement pension (AFP). The scheme is required by law for everyone who works in the private sector.
Your employer must set aside at least 2% of your salary up to 12G for retirement. This means that if you earn NOK 700,000 a year, your employer must set aside at least NOK 14,000 for your pension.
Many employers set aside more than the minimum requirement. How much is set aside for your pension depends on the pension scheme in your company.
What is the National Insurance basic amount (G)?
As of 1 May 2026, 1 G amounts to NOK 136,549.
- Most benefits in the National Insurance Scheme are stated in the number of G.
- The basic amount is adjusted on 1 May each year.
Three main types of private occupational pensions
There are three main types of occupational pensions in the private sector. The type you have depends on the pension scheme in the company where you work.
What are the differences between the different schemes, and what is a good scheme? Read more under the individual scheme.
Defined-contribution pension
Hvordan fungerer innskuddspensjon?
- Your employer sets aside an amount for your pension each year.
- The money is invested in funds through the pension provider.
- You will receive a pension based on how much you have saved up when you retire.
Hvor mye betaler arbeidsgiver inn til min pensjon?
- 7% of salary up to 12 G
- In addition: 18.1% of salary between 7.1 and 12 G
Er innskuddsgrensene tilpasset alderspensjonen i folketrygden?
Yes, the contribution limits are adapted to the retirement pension in the National Insurance Scheme.
- In the National Insurance Scheme, you save 18.1% of income up to 7.1G in a pension fund.
- If you have a salary higher than 7.1 G, you will not receive more pension from the National Insurance Scheme. But: The employer can compensate for this ceiling by depositing up to 18.1% for salary above 7.1G and 12G in pension contributions.
Hva betyr det at innskuddspensjonen har investeringsvalg?
Almost all defined-contribution pension schemes today give you as an employee investment choice. This means that you can decide for yourself how your pension will be invested – for example, in shares, interest rates or a combination.
Most pension providers have a pre-selected investment choice. The younger you are, the higher the proportion of your money will be invested in stocks. Normally, the proportion of equities is reduced as you approach retirement age. You can change this yourself.
If you choose a high equity share, you have the opportunity for a higher return over time. In the short term, the stock market can fluctuate a lot, and the value of the deposit can vary.
A common piece of advice is:
- A high share of equities when you are young and it is a long time before you start drawing your pension.
- Lower equity portion as you approach retirement age, to safeguard the values.
There is no definitive answer to what is the "right" de-escalation plan. The different pension providers have different solutions for when the equity portion begins to be reduced. Starting tapering at a too early age can result in unnecessary lost returns.
Finansportalen has good and updated information about defined-contribution pensions (forbrukerradet.no)
Hva er fordelene og ulempene med innskuddspensjon?
Benefits of a defined contribution pension:
- You know how much is set aside for retirement each year.
- Good savings rates can result in high payouts.
- You can often choose how the money will be invested.
- The money follows you if you change jobs.
- If you die, the money goes to your survivors.
Disadvantages of a defined contribution pension:
- You do not know how much you will receive in pension – how much pension you will receive depends, among other things, on how much the employer pays in contributions and the return on the pension capital.
- You take the risk of poor returns.
- The pension is not lifelong, so you can get many years as a pensioner without any payment from the occupational pension scheme.
Defined-benefit pension
How does a defined benefit pension work?
- Du tjener opp rett til pensjon basert på lønn og hvor lenge du jobber.
- Arbeidsgiveren garanterer en bestemt pensjon når du går av.
- Pensjonen utbetales livsvarig.
How is defined benefit pension calculated?
How long do I have to be a member to receive a full pension?
For å få full ytelsespensjon, må du som regel ha vært medlem i pensjonsordningen i minst 30 år.
What is included in the defined benefit pension scheme?
Ordningen inkluderer ofte også uførepensjon og etterlattepensjon. Det betyr at du kan være dekket hvis du blir ufør, eller at dine etterlatte får en ytelse hvis du dør.
How does the payment from the employer work?
Arbeidsgiver betaler en forsikringspremie som dekker både sparing til alderspensjon og forsikring hvis du blir ufør eller dør.
Hvor mye arbeidsgiver betaler for dette, avhenger blant annet av alderen på de ansatte og hvor god avkastning det blir på pensjonsmidlene.
What are the advantages and disadvantages of a defined benefit pension?
- Du vet hvor mye du får i pensjon (basert på sluttlønn).
- Pensjonen er livsvarig.
- Arbeidsgiveren tar investeringsrisikoen – lav risiko for deg som arbeidstaker.
- Inkluderer ofte uføre- og etterlattepensjon.
- Mindre fleksibilitet.
- Kan være vanskelig å ta med seg ved jobbskifte.
- Arbeidsgiveren kan endre ordningen.
- Krever lang opptjeningstid (vanligvis 30 år) for full pensjon.
- Rettighet fra ytelsesordning (fripolise) har normalt liten avkastning.
Merk:
- Kostnadene er mindre forutsigbare for arbeidsgiver.
- Forpliktelsene knyttet til ytelsespensjonsordningen inngår i selskapets balanseregnskap.
- Ytelsespensjon vil normalt være den beste ordningen for de fleste arbeidstakere, typisk ingeniører med relativt høy lønn.
Hybrid pension
Hvordan fungerer hybridpensjon?
A hybrid pension is a middle ground between a defined contribution pension and a defined benefit pension.
During the accrual period, it works much like a defined contribution scheme in that the employer sets aside money for pension based on your salary:
- 7% of salary up to 7.1 G.
- 18.1% of salary between 7.1 G and 12 G.
- The money is deposited into a pension fund in your name.
Hvordan blir utbetalingen med hybridpensjon?
Hvilke valgmuligheter finnes i hybridpensjon?
- For example, you can get a guarantee that ensures your deposit won't be lost. Such a guarantee will normally provide a lower return, but a more predictable pension.
- The pension scheme can also ensure that the return follows normal wage growth in society.
- The pension can also be managed with investment choices, in the same way as a defined contribution pension.
Hva er fordelene og ulempene med hybridpensjon?
- You will normally receive your pension for life – as long as you live.
- You will receive an inheritance gain* if you live a long time and normally receive a higher payout than with a defined contribution pension – all other things being equal.
Disadvantages of hybrid pension:
- A hybrid pension normally costs a little more than a defined contribution pension.
- If you die early, the money left behind will not receive in your retirement account.
*When someone in the scheme dies, your pension fund will be distributed among the survivors in the insurance scheme. This is called inheritance gain.
Hva er pensjonsbevis?
The capital from a hybrid pension is called a pension certificate. This cannot be combined with your own pension account and capital from a defined contribution pension.
Pension account
If you have a defined contribution pension, your pension will be collected in one account that follows you. You can choose who will manage your pension.
Many people have pension accrual from several employers in different defined contribution pension schemes. By gathering everything in oneaccount, you can save a lot in fees.
NITO offers you as a member very competitive prices for the management of both your own pension account and pension capital certificates. The offer also includes free retirement advice. The goal is for you to get the most pension for your money.
When you change jobs - what happens to your pension?
Paid-up policy from a defined benefit scheme
If you quit a job with a defined benefit pension without drawing the pension, you will receive a paid-up policy. It shows what you are entitled to in terms of annual lifelong pension.
Paid-up policies have hardly been upregulated in recent years, and thus do not keep pace with inflation and wage developments. They can therefore lose value over time.
When it comes to disability pension, it is now most common for the employer to take out insurance without paid-up policy rights. This means that you will not be entitled to a disability pension through the occupational pension if you leave your job without having become disabled. You will only receive a paid-up policy if you have been part of the scheme for at least one year.
Pension capital certificate from a defined contribution scheme
If you leave a job with a defined contribution pension before you draw your pension, you will receive a pension capital certificate. It shows how much has been saved up in your pension account.
How much you receive in pension depends on the return you receive and the costs that are deducted, until you start withdrawing the money.
If you have a pension capital certificate, it will usually be worthwhile to use the membership benefit NITO pension savings.
Pension certificate from a hybrid scheme
If you leave a job with a hybrid scheme before you draw your pension, you will receive a pension certificate. It shows how much pension stock you have earned.
Pension certificates can be managed with a guaranteed return or with a free choice of investment.
Check this when you change jobs
The first commandment is: Check what you get in pension in your new job.
1. How high is the deposit percentage?
Since occupational pension schemes vary widely, this is an important point to clarify when hiring.
For example: If you earn NOK 900,000 a year, your employer's annual pension contribution can vary from about NOK 18,000 to NOK 63,000, depending on how good the pension scheme is. The differences become even greater with higher wages.
2. Has the employer entered into a collective agreement with contractual early retirement pension (AFP)?
In addition to ordinary occupational pensions, some also have a contractual early retirement pension (AFP).
AFP is a collective agreement scheme. This means that the company must have AFP early retirement pension in a collective agreement with a trade union.
AFP early retirement pension can provide a substantial lifelong contribution to the retirement pension from the National Insurance Scheme. If you log in to nav.no you can see what the pension will mean for you.
3. Does the employer have a disability pension?
- If you become ill for a long time, NAV will cover 66% of salary up to 6 G.
- If you receive a disability pension through your employer, your salary up to 12 G will be covered.
Get an overview of your pension
Pensions for union representatives
Get an overview of the most important things you need to know about pensions as a union representative in the private sector - from the right to discuss changes to the pension scheme to AFP and the steering group.
