Private Pension Plans

A private pension plan is an essential factor in shaping your retirement and one of the most cost-effective ways to save.

A secure future

Investing in the future has never been easier. We offer a range of options designed to make planning for your retirement less stressful. Secure the future you deserve.

Everything you need to know about pension plans

Interest overview

The following is an overview of the nominal interest on of all our investment options. We must remind you that past success does not ensure success in the future.

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Íslandsbanki is the custodian of private pensions and other pension related payment plans owned by our customers. Íslandsbanki works in accordance with the Act on Mandatory Insurance of Pension Rights and on Activities of Pension Funds, No. 129/1997.

Are you missing out on a 2% wage raise?


You contribute 2-4% of your monthly income to your personal pension and your employer contributes an additional 2% on top of your wage. This is one of the easiest ways to secure a better future.

Advantages of Pension Savings

  • You can use the premium from your savings to pay towards a new home, tax free
  • No income tax on return
  • Fully inheritable
  • Unenforceable in bankruptcy
  • You can choose an investment plan to suit your needs
  • Available at 60 or due to disability

The objective of Íslandsbanki's Private Pension Plan is to help you invest efficiently and choose a plan to suit your needs.

Calculate your pension

Do you want to see how much equity you could have at retirement? Calculate your pension now.

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More information

If a beneficiary chooses a "Private Pension Plan" then his or her pension is kept in a savings account. The interest rates on retirement accounts are specified in Íslandsbanki's interest rate policy. Customers chose between CPI-linked or non-CPI-linked savings accounts.

Disbursements from Private Pension Portfolios

Private pension savings are available for disbursement at the age of 60, or earlier if the beneficiary suffers from an occupational disability.


General disclaimer regarding Private Pension Plans

Investments in financial instruments always entail financial risks, such as the risk of little or no return or total loss of capital. Past performance is neither an indication nor a guarantee of future returns. Risk increases if the investment is financed by credit and returns can increase or decrease due to exchange rate volatility if assets are in foreign currency. Taxation of Private Pension is assessed on an individual basis in accordance with current legislation and is subject to change.

Framtíðarauður is a Private Pension Fund in accordance with Act No. 129/1997 on Mandatory Pension Insurance and on the Activities of Pension Funds. Íslandsbanki is the custodian of Framtíðarauður. Investors are advised to familiarise themselves with the rules of Framtíðarauður and the different strategies of each investment plan.

Information on this site is intended for information purposes only and should not be considered as an offer or advice on the purchase, sale or other allocation of certain financial instruments. Íslandsbanki is not responsible for investment decisions made based on information on this site. The source of this information is considered reliable, but the accuracy or validity of the information cannot be guaranteed. The bank reserves the right to make changes to this information at any given time.

Exchange rate developments and returns

The annual administration fee is included in the daily calculation of each investment plan’s exchange rate. Return for 12-month periods or longer is calculated on an annual basis. Shorter periods are not calculated on an annual basis but show price change instead. Return is based on the latest price listed and portrayed in the base currency of each investment plan.