What happens to your retirement when you die depends on the kind of pension you have.
In practice, many people have large sums of money on various pension systems. But you will not get the highest paid value.
There are three major pension groups:
- National Insurance
- Pay Employer
- It produces its own retirement savings
Here is a brief overview.
Pensions from the national insurance system
Neither the retirement pension nor the pension portfolio are inherited. Otherwise, there may be a few current benefits for NAV survivors.
Pensions through employer
There are two main types of pensions with different payment policies in case of death. It is a defined contribution pension and a defined pension.
For defined-contribution pensions, the employer pays the amount of pension each year, in most cases the percentage of wages. Pension deposits have become more common in the private sector, fewer than those who have defined pensions.
All employees have their own pension bill. In the event of death, the balance of this account will be used to pay the heirs. If it is paid, the remainder will be paid to the heirs.
Read more about the defined contributions.
Defined retirement scheme
In defined pension, the employer pays so much that the employee receives a certain percentage of the retirement salary (60-70%).
Nothing will pay to the heirs here. Instead, that capital is returned to the pension system.
This must also be observed in the context of additional coverage provided by this retirement system. It can be linked to a family pension such as a family pension and a retirement pension for children. In the event of death, the pension can therefore be paid, even if it does not come directly from the pension savings itself.
In addition, this is common in group life insurance, where it is paid for death.
Two large schemes within defined pensions are for the PIL and the Norwegian Pension Fund for Public Services.
In PIL, most people are within municipalities and healthcare companies. In the Government Pension Fund they are civil servants and employees in the school system.
Here you can read more about the KLP.
You can read more about it at the Government Pension Fund.
Final retirement through employer
Here are two types:
These are full pensions derived from defined-benefit pensions. The rights are the same, ie nothing is paid off in the event of death.
Confirmation of Capital Pension
These are completed pensions from defined pensions. The rest is then used to pay the heirs.
Private pension savings
Over the years there were several variations of pension insurance. These are the two most important:
In today's individual IPS, the remaining pension capital belongs to the survivors if, after death, the agreed term of payment expires.
Read more about IPS.
IPA (Individual Pension Savings Agreement) was abolished in 2006. Deposits are paid here if one or more customers are identified. If users have died prior to the licensee, nothing is paid.
Read more about heritage:
A Guide to Hereditary Rights