You can withdraw money from your private pension account [is:séreignarsparnaður] when you reach 60 years of age, but there are several things you should consider:

• Withdrawing money has no effect on Social Insurance (TR) pension payments, but might effect disability payments
• Income tax is paid on withdrawal, so you should check inside which tax band it falls
• Icelandic private pension is fully inheritable
• Your spouse or children can inherit the amount without paying inheritance tax
• You do not pay tax on the interest your pension makes
• You can withdraw your pension before retirement and at any time after the age of sixty

Once retired you might be eligible for monthly social insurance payments in addition to your pension withdrawals. However, your entitlement depends on for how long you have lived in Iceland.

• Q&A at the Social insurance administration website

The higher your total income the higher taxes you pay. In retirement your income might be a combination of pension payments, private pension withdrawals and social insurance payments. Make sure you are aware of how much tax you will pay and if it might suit you to stretch your private pension withdrawals over a longer period of time.

How should you invest your money after the age of sixty?

Different periods mean different risks. Your investment choices will probably change as your circumstances change, before and after retirement.

You can leave the difficult decisions to our experts.