Employees can choose to build up Private Pension savings to supplement their pension. You contribute 2–4% of your salary, and your employer contributes an additional 2%. Your savings are available for withdrawal from age 60.

You can start saving into a Private Pension with LSR if you have previously contributed to any LSR fund and are a member of KÍ, the Icelandic Nurses’ Association, or a BSRB or BHM member association.

To get started, simply complete a Private Pension savings agreement on My Pages.

You can start withdrawing your Private Pension savings from age 60, provided at least two years have passed since your first contribution. You can choose how and when you receive your savings.

Yes. You can choose to receive a set amount each month, make withdrawals as needed, or withdraw your entire balance at once. However, you can only receive one Private Pension payment per month. LSR makes Private Pension payments on the 1st and 15th of each month.

Members of Division A can choose to allocate up to 3.5% of their mandatory pension contributions to a Specified Private Pension. Choosing this option will reduce your entitlement to a lifelong retirement pension and disability pension. Your Specified Private Pension savings are available for withdrawal from age 62.

Yes. Income tax is deducted from Private Pension payments.

Yes. Private Pension savings are inherited and distributed between the deceased’s spouse and children in accordance with Icelandic marriage and inheritance law. No inheritance tax is payable on inherited Private Pension savings.