How pensions work in Norway
Pensions may seem complicated, but the system is based on four simple elements. Here is an overview of how pensions work in Norway, what you can expect to receive, and where to find more information. As a NITO member, you also have access to extra services that can help you with your retirement planning.
The four pillars of the Norwegian pension system
Your pension is composed of four different elements:
- Pension from the National Insurance Scheme – gives everyone with a certain period of residence in Norway a pension for life.
- What you have earned through occupational pensions at work – there are different schemes in the public and private sectors, and it varies how good these schemes are.
- Contractual pension – if the employer is bound by a collective agreement with AFP
- What you have saved privately, for example through IPS – individual pension savings.
All four elements are important to ensure a good pension. The National Insurance Scheme provides a basic pension. However, in order to maintain your standard of living as a pensioner, you usually also need an occupational pension and private savings.
What is the National Insurance basic amount (G)?
As of 1 May 2025, 1 G amounts to NOK 130,160.
- Most benefits in the National Insurance Scheme are stated in the number of G.
- The basic amount is adjusted on 1 May each year.
Pensions from the state - National Insurance Scheme
The National Insurance Scheme ensures that everyone with a certain period of residence in Norway has a pension for life. You will receive more in pension the more years you have worked and the more you have earned. But there is a limit to how much pension you receive from the National Insurance Scheme.
The population is getting older, and thus public pension payments are also increasing. In order for the state to be able to withstand future pension expenses, the pension scheme has undergone major changes.
An important change in the new model for the National Insurance Scheme is that the annual pension payments are adapted to how long you are expected to be a pensioner. In practice, what you receive will depend on when you draw your pension and how long your cohort is expected to live, so-called life expectancy adjustment.
- The longer you stay in work, the more you receive in pension per year.
- The longer you are expected to live after your career has ended, the less money you will receive per year.
When can you take out your pension?
As a general rule, all pensions can be drawn from the age of 62 and freely combined with further work.
The exception is if you were born before 1962 and have earned retirement pension from a public occupational pension. In this pension scheme, you can retire with AFP early retirement pension from the age of 62, but you will not receive retirement pension until you are 67.
Different rules for different cohorts
The pension system has been changed several times, and different rules therefore apply to different cohorts. For retirement pension from the National Insurance Scheme, the following applies:
| Cohort | Rules that apply |
| Born before 1954 | Old calculation rules |
| Born between 1954 and 1962 | Combination of old and new calculation rules |
| Born 1962 or later | Completely new calculation rules ("pension reserves") |
Pension from work - occupational pension
Occupational pension is the pension you earn through your job's pension scheme. It is in addition to the pension you receive from the National Insurance Scheme.
When life expectancy increases and annual pension payments from the state become lower, occupational pensions become all the more important.
In the private sector, occupational pensions became mandatory in 2006, but there is great variation in how favourable the schemes are. In the public sector, there have long been good occupational pension schemes.
There are important differences between occupational pensions in the public and private sectors in terms of accrual and calculation. In the old scheme in the public sector, for cohorts born before 1963, there are also separate rules for withdrawal and coordination with the National Insurance Scheme.
Read more about private occupational pensions
Read more about public sector occupational pensions
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.
Early retirement - AFP
In the public sector, everyone on the old scheme (born before 1963) has an old type of contractual early retirement pension (AFP), which allows them to retire before the age of 67.
Lifelong AFP early retirement pension in the private sector
AFP is a collectively agreed scheme, and today's private AFP early retirement pension can provide a substantial lifelong contribution to the retirement pension from the National Insurance Scheme. You must be an employee and a genuine employee of an employer who has an AFP scheme until you draw your pension.
At the age of 62, the employee must have been in a private AFP scheme 7 out of the last 9 years. If the seniority requirement is not met at the age of 62, you will not be entitled to AFP. You must also be a genuine employee of the employer with AFP early retirement pension in order to be able to take out AFP.
Lifelong AFP early retirement pension in the public sector
A new AFP scheme has been introduced on the model of the one in the private sector for those born from 1963. AFP in the public sector has the same conditions and provides approximately the same pension payment as private AFP.
Where do you find out what you will receive in pension?
Do you know how much you will have to spend on retirement? How do you plan your retirement?
Many people wonder what they can expect to receive in pension from the National Insurance Scheme and various occupational pension schemes. On norskpensjon.no and nav.no/pensjon you get an overview. If you are or have been employed in the public sector, you must also check with the pension fund you are/were a member.
Checklist: How to get an overview of your pension
- Log in to nav.no - here you can see your accrual in the National Insurance Scheme
- Check norskpensjon.no - here you get a complete overview of all pensions
- Contact your employer - ask about the occupational pension scheme at work
NITO helps you with retirement
As a NITO member, you have access to several services that can help you with your retirement planning:
Member benefit: Pension savings for you as a NITO member
With NITO pension savings, you get very competitive prices for the management of both your own pension account and pension capital certificates. You also get free pension advice.
Read more about pension savings with NITO
Retirement courses and meetings
NITO sets up various courses and meetings about pensions for our members. Here you can learn more about the pension system and get answers to your questions, and check our course calendar for upcoming events.
