IPS - Individual Pension Savings

What should I consider before I start saving in an IPS?

• The funds are locked in until retirement age, and you can withdraw the funds at the earliest from the age of 62

• The pension must be paid out monthly until you turn 80. The minimum payout period is 10 years. However, if the annual payout is lower than 20 per cent of the National Insurance basic amount (G), the payout period may be reduced
• The tax benefit is only a deferral of tax, and you must pay tax on the contributed amount and potential rate of return upon payout. The payout is taxed as ordinary income
• You do not receive 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 at DNB, only for the annual management of the funds you choose

Which funds do I have access to in IPS?

You have access to the same fund selection regardless of whether you choose IPS or fund savings for retirement. At DNB, you can build your own portfolio of funds within the IPS solution. The selection consists of funds provided by both DNB and external managers.

You can also choose the DNB Lev Mer fund, which is specially adapted for pension savings, where you automatically receive a well-balanced composition of equities and interest rates adapted to your age. As you approach retirement age, the equity allocation is gradually reduced, thereby avoiding exposing your pension capital to unfavourable fluctuations in the equity market.

See an overview of the funds here

Is there a cost to open an investment savings account (IPS) with DNB?

There is no cost to open an investment savings account (IPS) with DNB. In an IPS, you can trade both DNB's own funds and funds from external managers. The fund cost you pay is split into two parts: management fee and platform fee, making 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 transaction costs, and these are costs that are already reflected in the daily fund price.Read more about DNB's pricing model here

What are the tax rules for IPS?

• You receive a deduction in ordinary income for the savings amount. The tax rate is 22% in 2026. If you save the maximum amount of NOK 25 000, you will receive NOK 5 500 back on your tax the following year
• The balance in IPS is exempt from wealth tax
• The return is not subject to tax as long as the money is held in IPS and you can switch funds without triggering a tax liability
• When you withdraw the money, the entire payment is taxed as ordinary income

When can I withdraw money saved in IPS?

You can withdraw the money at the earliest at age 62, and the payout must occur over at least 10 years and up to age 80.