AFP - Pension
AFP is a collectively bargained pension agreement that makes it possible to retire at 62. If you are employed in a company with a collective agreement that includes AFP, you may be entitled to AFP.
Previously, AFP was replaced by the old-age pension at age 67. The AFP benefit is now a lifelong addition to the old-age pension from the National Insurance.
You must apply for old-age pension in the National Insurance at the same time as you apply for AFP. This is because the new AFP is provided as an addition to the old-age pension. But you do not have to draw 100 percent of the old-age pension; you can choose to withdraw 20, 40, 50, 60 or 80 percent.
AFP is granted only if the requirements for old-age pension are met, including the requirement that you must be guaranteed the minimum pension level/guaranteed pension when you turn 67. When calculating whether you meet the requirement for the guaranteed pension, the AFP supplement is counted.
AFP for foreign workers
It is important to note that total accrual for a number of foreign workers, with short insurance coverage in Norway, is too low to meet the requirement for the guaranteed pension by age 67. They will therefore not be able to draw AFP at 62, even if they meet the other AFP eligibility requirements.
What are the requirements to get AFP?
Requirements related to turning 62
You must in 7 of the last 9 years before turning 62 have worked in company(ies) with a collective agreement where AFP is included.
But there are transitional provisions, for those born:
1944 – 1951 the rule is 3 of the last 5 years
1952 the rule is 4 of the last 6 years
1953 the rule is 5 of the last 7 years
1954 the rule is 6 of the last 8 years
You must therefore meet the tenure requirement before you turn 62. It does not help if you continue in the company and fulfil the requirement after turning 62, for example when you turn 63.
During the tenure period your main employment must be in an affiliated company, and your pensionable income (salary etc.) from the company must be higher than your other income.
You must have worked in at least a 20 percent position.
If in the last three years before turning 62 you have received a pension (not disability pension), waiting pay, or other benefits from current or former employment without a corresponding work obligation, you do not have the right to AFP if the value of the annual benefit is more than 1.5 G.