Today is the start of a new pension savings scheme, with tax benefits (IPS), but few Norwegians know about the benefits of the new scheme.
If you have the opportunity to save the money until you reach 62, IPS is a good way to do it. You receive 24% of the amount recovered from tax the following year. When you pay the money, you pay taxes as ordinary income,in 2017, at 24%.
‘This is a very good pension scheme. It’s been many years since saving a pension with tax deductions was so beneficial. Unfortunately, few know about this gift package,’ said Wenche Seljeseth, Head of Pensions at SpareBank 1.
In a Respons Analysis survey, conducted on behalf of SpareBank 1, 93% said that they had little or no knowledge of the new pension package.
Least knowledge in Hedmark and Oppland
The survey showed that people in Hedmark and Oppland had the least knowledge of the new pension scheme. A total of 99% of respondents stated that they had little or no knowledge of it. The greatest knowledge was in Akershus, and Northern Norway.
It is the northerners who think it most appropriate to save a pension, and tie up the money until they are 62 years old, while trønderne are least motivated to bind savings money for so long. People in Western Norway find it appropriate to save a pension, regardless of whether the money is bound or not.
The youngest think mostly long-term
It is those between the ages of 18 and 24 who have the worst knowledge of new individual pension schemes. At the same time, they are those who think it’s most appropriate to create an account where savings are bound until 62 years of age.
‘This suggests that many young people want to save for retirement. We live longer, and there will be even more retirees in the future. This means that the pension from the National Insurance Scheme won’t be enough to finance the standard of living we’ve become accustomed to’, said Seljeseth.
Source: SpareBank 1 / Norway Today