Pension in Norway: What can go wrong, even if you think you have everything under control?

You've been working in Norway for years, paying contributions every month, sometimes even checking your pension balance on the NAV portal. Everything should be fine. Yet – many Poles in Norway fall into the same traps, which after years turn out to be costly mistakes. The problem isn't that they don't know the system. More often, they know it superficially or... simply assume too much in advance.

Folketrygden – it's just the beginning

The Norwegian pension system gives a false sense of security. Since the state saves part of the money for us, we should have "some" pension. And indeed – we will get something. But for many people, this can be a painful collision with reality. Folketrygden, the basic state pension, provides benefits only at the level of 40–50% of the last salary. And yet, the cost of living, especially in Norway, doesn't magically decrease after turning 67. If we don't take care of additional sources of income, it may turn out that the future is not as stable as we imagined.

When to retire? It's not that simple

The Norwegian system offers great flexibility: you can start receiving your pension from the age of 62. Sounds tempting – after all, who doesn't dream of early rest? The problem is that the earlier you start receiving benefits, the lower the monthly amount will be – for the rest of your life. On the other hand, if you wait until, for example, 70, the amounts will be significantly higher. The system is based on life expectancy statistics – it assumes that the state will pay you roughly the same amount, just distributed differently over time.

The decision about when to retire should be conscious and well thought out. It's worth calculating scenarios – how much will I receive monthly at age 62, and how much if I wait? What will the difference be over the first 10 years? And how will my situation be affected by the fact that I can earn additional income even while receiving a pension? Taking money "just in case," without a plan, can turn out to be premature and unprofitable. If you're approaching the moment of making this decision, perform a pension calculation to know how much you can receive at this point.

Norwegian pension, but living in Poland – what then?

More and more Poles declare that they plan to return to Poland for retirement. Lower living costs, familiar environment, proximity to family – it's understandable. But this scenario requires prior planning.

Firstly: the Norwegian pension paid to Poland is subject to Polish taxation. And although there is a double taxation treaty between Norway and Poland, in practice you may still pay more than you expected.

Secondly – your pension will be paid in Norwegian kroner, so you must consider currency exchange risk.

It's also worth considering whether to maintain tax residency in Norway, especially if you receive AFP benefits (early retirement from collective agreements), which may only be available if you live in Norway. Each situation requires individual analysis – and many people only think about it at retirement, when it's already too late for changes.

Finally: retirement is not an abstraction

Although the word "retirement" still seems distant to many people, it's worth treating it as a financial project that lasts throughout adult life. The earlier you plan it, the fewer surprises await you at the finish line.

And although the Norwegian pension system is considered one of the best in Europe, it doesn't protect against lack of awareness. It's not enough to "be in the system." You need to know how to use it.

Read more information about the Norwegian pension here.