Pension account withdrawals

You can withdraw your pension in any manner you choose from the age of 60. Your personal circumstances are the most important factor when considering the best time to withdraw your money. You can apply for withdraw online here (only in Icelandic).

Make sure you have signed up for private pension

Additional pension savings is optional but available to everyone working in Iceland. If you deposit 2-4% of your monthly salary into a private pension scheme your employer is obligated by law to give you an additional 2%. That alone probably makes it the best type of savings in Iceland but additionally it is fully inheritable, exempt from capital income tax as well as reduction of social insurance pension and cannot be accessed by creditors in case of bankruptcy.

Your private pension is therefore a valuable asset that you should take very seriously and sign up for, if you haven’t already. There is no age limit regarding the permission to deposit a part of your salary. As long as you are working you can deposit 2-4% of your salary and get the 2% additional payment from your employer.