Scheme concerning tax-favourable individual pension saving

Scheme concerning tax-favourable individual pension saving was introduced from 1 November 2017. This scheme will replace former individual pension saving scheme ( former IPS), that was closed on 1 November 2017 for subscriptions.

The old individual pension savings (IPS) scheme was closed for new subscriptions when the new scheme took effect, but old IPS agreements predating 1 November 2017 may be continued with the same tax treatment as before.

Withdrawals from the new scheme must be taxed as capital income. This means that withdrawals from the scheme will not be taxed as personal income, with bracket tax to the state and national insurance contributions, but only as ordinary income. The other aspects of the new scheme will be taxed in the same way as in the old IPS scheme. Your funds in the scheme will therefore be excepted from net wealth tax, and the profits are not taxed on an ongoing basis.

If you, in the same income year, make payments to both your old IPS scheme and the new scheme, the deductions will be coordinated for the two schemes. The total deduction will not exceed NOK 15,000. 

The details in the scheme for tax beneficial individual pension saving has been specified by a regulation. 


The scheme is limited to pension savings agreements, but opens for introducing an insurance element into the agreement. It can include insurance that lets you stop making deposits if you become disabled. It can also cover insurance for the financial risk related to how the value of the old-age pension capital fluctuates. The customer must be entitled to old-age pensions under the  pension agreement.


The agreement on individual pension savings can be offered by banks, life insurance companies, pension enterprises (pension funds and depository pension enterprises), securities companies and management companies for securities. The Norwegian Tax Administration will be informed about deposits.

Management options

The agreement must state the terms for how the pension capital is managed. It must also specify whether it's the institution or the customer who chooses which assets to include in the portfolio, the customer's right to change the composition of the portfolio and the terms for such changes. The pension capital linked to the agreement can only be paid out as pension. This means that the funds are tied up until you start drawing a pension.


Total annual payment, remuneration for insurance linked to the agreement, remuneration for administration of the pension scheme, and remuneration for management of the annual contribution cannot exceed NOK 15,000 per person. To receive the deduction, the payment must be made before the end of the income year.


Old-age pension can only be withdrawn after you have turned 62. It will be paid out in a fixed numbers of years. The payment period will last from the payments starts until you turn 80, at least, but no less than 10 years. If you're entitled to disability benefits from the Norwegian National Insurance Scheme, you can still demand that the institution start paying out your pension immediately.

The old-age pension capital will not lapse if you die. It can be used for child pensions or survivor's benefits to a spouse, registered partner or cohabitant in accordance with the rules in the Defined-Contribution Occupational Pensions Act. If the pension capital is not used, it will be paid out as a lump sum to the estate. If pension capital is paid out as old-age pensions, child pensions, survivor's benefits and lump sums to the estate, it is taxed as capital income (general income).