Pension Savings

What should I consider if I am under 35 years old?

If you save one hundred kroner per month, that is much better than nothing. The most important thing is that you start your pension savings early.

The pension that your employer saves for you is often invested in a pension profile that may consist of equities and fixed income securities. Since it is a long time until you retire, you can choose a pension profile with a high proportion of equities. Read more about pension profiles here

The important thing is that you stick to your strategy, both regarding your pension profile and your monthly savings, even when there is volatility in the equity market. That is when you have the opportunity to get more value for the money saved for your pension, and it can give you a good return over time.

What should I consider if I am between 35 and 45 years old?

Many people gradually find they have more room for saving at this stage of life. Start by getting an overview of how much you will receive in pension. The earlier you start pension savings, the lower the amount you need to set aside. Remember that it is better to start with a small amount than not to start at all.

There is still a long time until you become a pensioner, and therefore it may be wise to choose most of your pension savings in equities. This way you may have the opportunity to get more in return for your money, even though the values will fluctuate along the way. Remember to stay true to your plan, and continue saving even when the stock market is volatile. This way you can get the most out of your money in the long term.

Ask your employer how much is being set aside for pension savings for you, and whether you can make choices within the pension scheme yourself. If you change jobs you should remember to check the pension scheme. The differences are significant, and if you get a worse pension, you should be compensated with a higher salary.

What should I consider if I am between 45 and 55 years old?

Pension savings are now becoming important, and if you have not started yet, you should begin saving for your pension now. You should investigate how much you will receive in pension. If you wish to retire early you must start looking at how this will affect your total pension in the years ahead. Many find that they then need to increase their savings significantly in order to afford to retire early.

Get a complete overview of the pension scheme with your employer. It is at this stage that you have the opportunity to adjust your savings, so that your retirement becomes what you want it to be. If you change jobs it is particularly important to make a thorough assessment of the pension schemes. If you come out worse off, you should ensure that you are compensated for this with a higher salary. If you receive a higher salary due to a worse pension scheme you must remember to set aside more money for your own pension savings.

Many couples wish to retire at the same time, even if they are not the same age. If you wish to retire at the same time, it is particularly important to see how this will affect your finances.

Review your savings agreements to see if you are on track based on the retirement age you are planning. If you need to make changes to reduce your proportion of shares, check whether you need to adjust this yourself or if it happens automatically.