Members of Division A may continue working after beginning to receive a full pension and continue accruing pension rights until age 70. At age 70, the pension is recalculated to reflect contributions received after full pension payments began, and the pension payments are increased accordingly. 

You can see how this would affect you by activating the "Working While Receiving a Full Pension" option in the left-hand column. If you are logged into My Pages, you only need to make selections in three fields:

1. When full retirement pension payments begin
2. The salary you expect to earn while receiving a full pension
3. How long you expect to continue paying contributions (i.e. when you plan to stop working)

The results section will then show estimated pension payments both for the period immediately full pension payments begin and for the period after the recalculation at age 70. 

Members of Division A may direct 3.5% of their mandatory pension contributions into a Specified Private Pension, with a corresponding reduction in contributions to the mutual insurance division. This provides greater flexibility in retirement income planning, but results in lower lifelong monthly pension payments. 

The effect of contributing to a Specified Private Pension can be calculated by activating the Specified Private Pension section in the middle column of the calculator.

The following five fields can be adjusted:

1. Current balance (if you already have a Specified Private Pension with LSR, the balance is pre-filled on My Pages)
2. When regular withdrawals should commence (from age 62 onwards)
3. The period over which you want to spread the payments
4. The contribution percentage you want directed to the Specified Private Pension (3.5% is the maximum)
5. The rate of return you expect

The Estimated Results section will then display the estimated monthly withdrawals from the Specified Private Pension as well as the estimated total amount:

The Estimated Monthly Payments chart provides a visual representation of the estimated monthly payments, including both lifelong pension payments and withdrawals from the Specified Private Pension based on your choices:

For example, the above chart shows a payment structure where the Specified Private Pension is spread over five years, with two years of payments before retirement pension payments begin and three years after. A dashed line is also shown, indicating the pension amount that would have been payable if no contributions had been made to a Specified Private Pension. This provides a simple way to see the impact that a Specified Private Pension has on lifelong retirement benefits.

By hovering over the bars in the chart, you can view a breakdown of the monthly payment amounts:

All employees have the option of contributing to a Private Pension. Employees contribute 2–4% of their salary, while the employer contributes an additional 2%, effectively providing a direct salary increase.

The impact of saving in a Private Pension with LSR can be viewed by activating the Private Pension section in the right-hand column of the calculator.

Here, you set the following variables:

1. Current balance (if you already have a Private Pension with LSR, your current balance is pre-filled on My Pages)
2. When regular withdrawals should begin (from age 60 onwards)
3. The period over which you want to spread the payments
4. The percentage of salary you wish to contribute (2–4%, with an additional 2% employer contribution)
5. The rate of return you expect

The Estimated Results section will then display estimated monthly withdrawals from the Private Pension along with the estimated total amount.

The Estimated Monthly Payments chart also shows these estimated monthly payments visually, including both lifelong pension payments and withdrawals from the Private Pension based on your assumptions:

For example, the chart above shows where payments from a Private Pension have been spread over ten years, with two years of withdrawals before retirement pension payments begin and eight years after. By hovering over the bars, you can view a breakdown of the estimated monthly payments.

Jóna is 52 years old, earns ISK 890,000 per month, and has accrued pension rights equivalent to ISK 450,000 per month under age-related accrual at age 67. She has also accumulated ISK 6,500,000 in a Private Pension with LSR, to which she contributes 4% of her salary. All of this information is pre-filled when she opens the calculator on My Pages (circled yellow on the following screenshot).

Jóna has started planning her retirement and would like to reduce her working hours during her final working years while maintaining a similar level of income. One option would be to begin receiving a half retirement pension at age 63 and reduce her workload to 75%.

She could also begin contributing to a Specified Private Pension and start receiving payments from it at age 63 until she begins drawing a full retirement pension at age 68. Jóna is also considering continuing to work 50% of a full-time position while receiving a full pension until age 70. She intends to use her Private Pension savings to supplement her income from age 70 onwards, after she stops working.

Jóna enters the following assumptions into the calculator (circled red on the screenshot below):

1. "Commencement of full pension payments" is set at age 68
2. Half Pension: The "Half Pension" option is activated
3. "Commencement of half pension payments" is set to 63 years
4. "Salary while receiving half pension" is set to 667,500 (75% of 890,000 ISK, the current salary)
5. Working while receiving full pension: Since Jóna is planning to work 50% while receiving full pension (from 68 to 70 years), she activates the "Working while receiving full pension" option
6. The "Salary while receiving full pension" is set to 445,000 (50% of 890,000 ISK, the current salary)
7. "Premiums paid until" is set to 70 years
8. Specified Private Pension: In the middle column, the "Specified Private Pension Savings" option is activated
9. Current balance is kept at 0 since Jóna has not been paying into Specified Private Pension
10. "Commencement of payment" is set to 63 years
11. "Disbursement period" is set to 5 years
12. "Contribution rate" is set to 3.5% since Jóna plans on making full use of Specified Private Pension from now on
13. "Estimated return" is set to 3.5%, which is close to the 10 year average of real return for LSR Private Pension
14. Private Pension: In the column on the right, "Commencement of payment" is set to 70 years
15. "Disbursement period" is set to 12 years
16. "Your contribution" is kept unchanged
17. "Estimated return" is kept at 3.5%, which is close to the 10 year average of real return for LSR's Securities Plan

The estimated results can then be seen in the screenshots below:

The estimated results show that:

• Half pension payments from age 63 to 68 are estimated at ISK 210,877 per month.
• Full retirement pension payments from age 68 to 70 are estimated at ISK 530,496 per month.
• After age 70, the pension increases to an estimated ISK 538,408 per month due to the additional contributions paid while working between ages 68 and 70.

Monthly payments from the Specified Private Pension are estimated at ISK 114,031 over five years (ages 63–68), for a total of ISK 6,841,860.

Monthly withdrawals from the Private Pension are estimated at ISK 225,947 over twelve years (ages 70–82), for a total of ISK 32,536,368.

The "Estimated Monthly Payments" chart shows the annual payment levels visually:

By hovering over each bar, Jóna can see the estimated total monthly income.

From age 63 to 68, the combined payments from her Half pension and Specified Private Pension are estimated at ISK 324,908 per month. Together with her salary of ISK 667,500, her total estimated monthly income would be ISK 992,402. Despite working fewer hours, her income would increase during this period.

From age 68 to 70, Jóna receives a full pension of ISK 530,496 per month while continuing to earn ISK 445,000 in salary. Her total estimated monthly income would therefore be ISK 975,496.

After retiring completely at age 70, withdrawals from her Private Pension begin and her pension payments increase slightly. Her estimated total monthly income would then be ISK 764,355 until age 82.

After the Private Pension payments end, she would continue receiving lifelong pension payments estimated at ISK 538,408 per month.