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.

Practical information on the submission of breakdown sheets and premium payments.

Submitting breakdown sheets and premium payments

According to most collective agreements, your employer will contribute 2% to your private pension plan if you contribute 2 - 4% of your monthly income. Collective agreements may, however, provide for an increased contribution. Employers are allowed to pay 15.5% of wages for each employee, in total, into mandatory - and additional pension savings plans. If the premium exceeds this limit, then it becomes taxable income.

Breakdown sheets

Employers should send breakdown sheets as soon as possible to ensure the beneficiary enjoys a return on their savings.

The simplest way to submit breakdown sheets is to send them electronically through the payroll website. You can also send breakdown sheets directly from most payroll systems.

Two ways to submit breakdown sheets

Employer website
Future Wealth is Íslandsbanki‘s private pension plan, and its employer website is designed to assist employers. It's easy to submit breakdown sheets on the payroll website. You can also send text files from payroll systems, view status and movements, and explore payroll statements.

  1. Payroll system

The service provider of the relevant salary system provides more information.

Premium payments

You can pay private pension savings premiums by depositing to the fund's bank account or requesting a monthly payment plan, which will appear in the Corporate Bank.

Future Wealth
ID No: 491008-0160
Hagasmára 3, 201 Kópavogi
Email: lif@islandsbanki.is
Tel: 440-4000
Pension fund number: 006
Premiums paid into account No: 515-26-5330

  • Due date: 10th day of the month following the wage period 
  • Final due date: The last day of the following month after the wage period

Please contact our Sav­ings & Invest­ments Division Tel: 440-4000 for more information.

Fixed monthly payment

Those who pay a fixed monthly amount can request to be part of a monthly cycle that creates a breakdown sheet and a payment slip for payment in the online bank.

Sole proprietors and self-employed individuals

A significant advantage of private savings for the average worker is that the employer takes care of payments, making saving much more effortless. In the case of self-employed individuals, different rules apply to what can be paid into personal savings, and they must make the payments themselves.

Future Wealth makes it simple for self-employed individuals to pay into private savings.

How much can a self-employed person pay into personal savings?

Payments in private savings are divided into the employee's contribution and the employer´s contribution.

Employee contribution

Self-employed individuals can pay up to 4% of the calculated salary as an employee contribution to private savings.

What are the benefits?

  • Income tax paid when withdrawing personal savings
  • No capital gains tax is paid on returns
  • You can pay up to 4% of the calculated salary

Employer's contribution

Self-employed individuals can pay up to 4% of their calculated salary plus two million ISK per year as an employer contribution to personal savings.

Self-employed individuals may pay up to 12% of their wages plus ISK. 2,000,000 per year as the employer's contribution to compulsory and/or private savings. This percentage can go up to 4% but is 2% in most cases (the same as ordinary employees). You should always consult an accountant to clarify.

  • You can submit breakdown sheets for each month and receive a claim through the online bank (see details on the employer website).
  • You can pay a fixed monthly amount and receive a claim through the online bank.

Can I use my private pension savings for a mortgage or a down payment on a home?

Like others, self-employed individuals can use the government's temporary measures on the tax-free use of personal savings towards a mortgage or a down payment for a house. See more info here.