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You shouldn't look only at supplementary pension for Norway. Everyone gets the basic pension as well, and if you're employed your employer must also contribute

You shouldn't look only at supplementary pension for Norway. Everyone gets the basic pension as well, and if you're employed your employer must also contribute on your behalf.

refurb 6y ago
So what is the maximum for someone with a high income? I'm not that familiar with Norway's pension system, so definitely open to being educated on it. It's complex, but if you have a high salary it looks like the basic pension is NOK 89 872, so another $9,889 USD, for a total of $42,105 USD?
- mortehu 6y ago
  Disclaimer: this is awfully complicated, and I’m not an expert What’s most relevant for this discussion is the system for people who are earning now for retirement in the future. The amounts are adjusted yearly, but the current maximum rate is about $14300. This is tax funded, and so doesn’t come out of your disposable income. Gaps from illness, unemployment, military service and caregiving are covered. When you start withdrawal, the accrued amount is adjusted for changes in the average national income and your life expectancy based on your age. I.e. the money is paid back to you at a rate that draws your balance to zero at the expected date of your death. If you live longer, it keeps going of course, funded by the people who die earlier. The maximum rate is therefore achieved by retiring at the oldest age (74), or roughly $97000/year with today’s numbers. This would require making well above the national average salary starting at age 13. If you max out your income based pension described above, the base pension gets reduced substantially. Looks like it can go as low as $4300/year of benefits currently. On top of these two pension types, your employer must save at least 2% of your income up to $134000, and pay for insurance that covers contributions if you become disabled. The employer must cover all associated costs. These plans vary a lot and have no maximum. I will add that you need substantially less income in retirement in Norway since you won’t be paying for healthcare, and property taxes are extremely low.

You shouldn't look only at supplementary pension for Norway. Everyone gets the basic pension as well, and if you're employed your employer must also contribute on your behalf.

refurb 6y ago

So what is the maximum for someone with a high income? I'm not that familiar with Norway's pension system, so definitely open to being educated on it. It's complex, but if you have a high salary it looks like the basic pension is NOK 89 872, so another $9,889 USD, for a total of $42,105 USD?

mortehu 6y ago
Disclaimer: this is awfully complicated, and I’m not an expert What’s most relevant for this discussion is the system for people who are earning now for retirement in the future. The amounts are adjusted yearly, but the current maximum rate is about $14300. This is tax funded, and so doesn’t come out of your disposable income. Gaps from illness, unemployment, military service and caregiving are covered. When you start withdrawal, the accrued amount is adjusted for changes in the average national income and your life expectancy based on your age. I.e. the money is paid back to you at a rate that draws your balance to zero at the expected date of your death. If you live longer, it keeps going of course, funded by the people who die earlier. The maximum rate is therefore achieved by retiring at the oldest age (74), or roughly $97000/year with today’s numbers. This would require making well above the national average salary starting at age 13. If you max out your income based pension described above, the base pension gets reduced substantially. Looks like it can go as low as $4300/year of benefits currently. On top of these two pension types, your employer must save at least 2% of your income up to $134000, and pay for insurance that covers contributions if you become disabled. The employer must cover all associated costs. These plans vary a lot and have no maximum. I will add that you need substantially less income in retirement in Norway since you won’t be paying for healthcare, and property taxes are extremely low.