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Choose your private pension fund wisely

14. July 2025

Private pension savings are among the best savings options available, as employers contribute an additional 2% of your salary into the fund. Choosing the right fund matters, because some charge significant fees.

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At LSR, it’s straightforward: Members saving in a private pension or specified private pension with LSR pay no setup fees, no sales commissions, no management fees, and no withdrawal charges. This means your entire contribution goes directly into your pension from day one.

The National Association of Pension Funds has published a detailed guide on how to compare services (in Icelandic) offered by different private pension funds. It highlights key points to consider before making your choice.

Additionally, Aurbjörg has put together an excellent information page on pensions, including a ranking of funds by 10-year real returns. There, LSR’s “Leið I” fund ranks among the top, with an average real return of 4.1% over the past 10 years.

You can accumulate significant savings in a private pension over your working life, so it's important to take the time and choose carefully. Don’t let pushy salespeople dictate your future—do your research and make an informed decision. It pays off!

Apply for Private pension at LSR now