Pension: Tips for young people
When you're young, retirement may not be the first thing that comes to mind. But by taking a few simple steps now, it can make a big difference later. Here's the most important thing you need to know about pensions – and how your Nordea membership benefit can help you gain control.
Retirement may sound boring, especially when it's so long until you retire. But the sooner you take a few simple steps, the less you need to stress later. And no – you don't need to be an expert or have a lot of money to get started.
Pensions – briefly explained
Pension is money you will live on the day you stop working. For most people, the pension consists of three parts:
- Pensions from the state (National Insurance Scheme)
- Pension from your job (defined contribution pension)
- Own savings (optional, but smart)
If you work in a private company with a defined contribution pension, a separate pension account (EPK) is automatically created in your name. In your own pension account you will find:
- The pension money your current employer saves for you
- Pension capital certificate (any pension you have already earned with previous employers)
By logging in to norskpensjon.no , you get an overall overview of your pension and where your own pension account is currently located.
Your own pension account: Your choice
Many people think that the money is locked with the provider your employer has chosen, but this is not true. You are the owner of the account, and you are free to choose where it should be located.
Why is it important?
- Costs vary
Different providers charge different fees for managing your money. Small differences in costs can amount to many thousands of kroner in the long run. - The money can be invested differently
How your pension is invested affects how much it grows. Over time, this can have a big impact on your final amount.
Did you know that as a NITO member, you get very good benefits on pensions at Nordea? By moving your own pension account to Nordea, you get a solution that is adapted to your situation, with extra good terms as a member.
Move your own pension account to Nordea
As a NITO member, you have access to a number of good banking benefits at Nordea – including pensions.
Moving your own pension account to Nordea is easy, free, and can be done digitally.
Benefits of having a separate pension account with Nordea
- Competitive prices
- Broader investment range
- Free retirement advice
- Good overview of your pension in the Nordea Boost mobile solution
How should your retirement money be invested?
As a young person, you have one big advantage: time. Your pension money can withstand fluctuations over many years, and equities have historically yielded higher returns over time than more cautious alternatives, which is why many young people choose a high proportion of equities (often around 80%) in their retirement savings.
If you start early, you also get the effect of what is called "interest on interest". This means that the return you get will start to generate new returns over time. Small choices today can grow big over time.
Get free retirement advice
Do you have questions about pension, or do you want to know more about your membership benefit on pension?
As a NITO member, you have access to individual pension advice from Nordea – completely free of charge.
Your banking benefits at Nordea
As a NITO member, you have access to a number of great benefits at Nordea.
If you are between 18 and 34 years old, you automatically qualify for Nordea's Premium Next programme, which gives you exclusive benefits such as Premium Mastercard, free VIP lounge access, and extra good loan terms.
To access all the benefits, you must have a salary account with Nordea.
Nordea Premium Next – for those under the age of 34
- One of the market's best interest rates on mortgages
- Good terms on daily banking and car loans
- VIP lounge access at airports
- Prioritising Nordea's customer service
- Personal advice
- Bank card without annual fee
- Premium Mastercard with no annual fee
To access all the benefits, you must have a salary account with Nordea.
Price example First home loan: Nom. interest rate 4.84 % p.a., eff. interest rate 5.01 % p.a., 2,000,000 o/25 years. Total costs: NOK 3,471,336.
