IPS - individual pension savings

IPS is suitable for those who want to save for a pension and have deferred taxes. In addition, you should

• no longer be saving in a BSU home savings scheme;
• have paid off a large proportion of your mortgage;
• be in a position to lock in your savings until you reach the age of 62.

• The money is locked in until retirement age, and you can withdraw the money at the earliest from the age of 62.
• The pension will be paid out monthly until you turn 80. The minimum disbursement period is 10 years. If the annual payment is lower than 20 per cent of the National Insurance basic amount (G), the payment period can still be reduced
• The tax benefit is only a deferral of tax, and you must pay tax on the amount paid in and the potential return on withdrawal. The payment is taxed as ordinary income
• You do not get a shielding deduction when saving in equity funds within the IPS solution, as the return is taxed as ordinary income.
• You pay nothing for your IPS in DNB, only for annual management of the mutual funds you choose.

You have access to the same fund range regardless of whether you choose to use IPS or saving in mutual funds for your pension. In DNB, you can put together your own portfolio of funds in the individual pension savings (IPS) solution. The selection consists of funds supplied by both DNB and external managers.

You can also choose the DNB Lev Mer fund that is specially adapted for pension savings, where you automatically get a good proportion of shares and fixed-income securities, adjusted to your age. When you approach retirement age, the proportion of equities is gradually reduced, thus avoiding the pension capital being subjected to unfortunate fluctuations in the equity market.

See an overview of the mutual funds here

It costs nothing to create an individual pension savings (IPS) at DNB. In an individual pension savings (IPS), you can invest in both DNB mutual funds and mutual funds from external managers. The mutual fund fee you pay is split in two between management fees and platform fees, and this makes it easier to see what you pay to the manager and what you pay to the distributor. In addition, a fund will also be charged with transaction costs, and these are costs that are already taken into account in the daily fund price. Read more about DNB’s price model here

• You get a deduction in ordinary income on the savings amount. The tax rate is 22% in 2021. If you save the maximum amount of NOK 15,000, you’ll get NOK 3,300 back on the tax next year
• Holdings in IPS are exempt from wealth tax
• The return is not taxable as long as the money is placed in IPS, and you can switch mutual funds without triggering tax liability
• When you withdraw the money, the entire amount is taxed as ordinary income