Defined Contribution Pension
In a defined contribution pension, your employer saves a certain percentage of your salary each month. The money is placed in your own pension account.
Savings profiles
The money is invested in pension profiles consisting of various funds. You may choose from different investment alternatives (profiles or funds) that apply for your employer's defined contribution pension scheme.
The size of the pension payment will depend on how much your employer has saved and the return you have received on the assets.
Not sure about your pension portfolio?
We have made a web application that collects all your pension schemes in one place. Log in and get a full overview of your pension assets.
What is defined contribution pension?
- If you are over 13 years old, you are part of your employer's defined contribution pension scheme.
- Your employer must save a minimum of 2 percent of your salary up to 12 G (National Insurance basic amount ). The employer can save up to 7 percent of your salary from the first sum you earn. The employer can offer additional savings of up to 18.1 percent of the salary between 7.1 and 12 G.
- For most of our customers with a defined contribution pension the pension assets are invested in the savings scheme «Storebrand Recommended pension». Within this scheme, your age determines the combination of securities. For younger customers the proportion of shares will be high, but as time passes, the money will be transferred to bond funds that fluctuate less in value. The reasoning behind this is that it is smart to have a high proportion of shares when the pension payments are far into the future, and then gradually reduce the proportion of shares as the time of payment approaches.
- If you are unsure of how your assets are invested, or want to make alterations, log in to your personal pages and select "Pension".
- You can start claiming your pension from the age of 62. The main rule is that the pension must be paid out until the age of 77, and for a minimum of 10 years.
- If you die before all the pension assets have been paid out, what is left will be paid out to your surviving relatives.
Own pension account
Own pension account was introduced in January 2021. In this account, all your defined contribution pension is collected automatically - both from current and previous employers.