The Consumer Council warned of high fees on individual pension savings. If you deposit 40,000 kroner a year for 25 years, you will also pay NOK 110,000 in fees.
Geir Ormseth, a specialist in financial advice, told NRK news that banks fail to inform customers about these fees.
‘These percentages that are paid in annual management fees look pretty innocent, but they eat away the same amount of savings year after year, and therefore the real, total price tag is significant.
This is strongly under-emphasised’, said Ormseth.
Pension economist, Knut Dyre Haug, at Storebrand Bank, rejects this.
‘Firstly, it is not significant. There are very moderate costs for this product.
Only administrative costs, i.e. the costs associated with managing the money, and reporting to the customer, and public authorities,’ said Dyre Haug.
Individual retirement savings are a new arrangement where one can save up to 40,000 kroner a year for at least 18 years. The savings can’t be paid out until the age of 62.
© NTB Scanpix / Norway Today