Retirement returns

Our circumstances change when we retire. How should you invest your money after the age of 60?

Our team of financial experts can help you invest your money and distribute your funds.

Do I need to make any changes when I retire?

You decide the best way to invest your money. Your choice does not necessarily take your age into consideration but our circumstances change as we enter the next phase of our lives. There is more room for fluctuations in our returns when we are young and at the beginning of our savings and investment journey. These fluctuations are not as welcome once we reach retirement age and need to use the money saved. Distributing your assets and minimising risk becomes the main focus during this period in our lives

Some important considerations for those reaching retirement

  • Assess the best way to distribute your assets and minimise risk
  • Lock-in periods often offer higher interest rates. Assess just how much money you would be willing to lock-in
  • Remember that indexed bank accounts are locked-in for a period of at least 3 years and indexed government guaranteed bonds can fluctuate

Effects of interest on social insurance payments

Payments of the Social Insurance Administration (TR) depend on your revenue.

Interest and other capital gains can affect your TR payments. The reduction ratio for those living alone is 56,9% but 45% for others.

Please visit the TR website for more information.


Investing money means different things to different people. We offer a diverse range of savings and investment options such as our Sixty Plus Account which is specifically designed for people over the age of 60.

You might consider investing in government guaranteed bonds to secure your money. You should always be aware of the fact that these bonds fluctuate and accessing the money invested with short notice can be problematic.

You can buy government guaranteed bonds directly or via a government fund.

Single bonds


Customer responsible for asset distribution

Fund Manager responsible for asset distribution

Annuity, interest and indexation paid

Annuity, interest and indexation reinvested

Returns mostly foreseeable if shares allowed to reach final maturity

Total returns unclear due to fund management

Income tax paid on payment of interest and indexation

No tax paid until withdrawal

How much tax do I pay on my savings?

All capital gains, including interest and indexation on bank accounts and bonds, are taxed at a rate of 22% (capital income tax).

There is an income threshold on capital gains (ISK 300,000 per individual) and income up to that amount is exempt.

Capital income tax is not paid on private pension returns and only paid on funds once they are withdrawn.

Can I ask the experts to oversee my savings and investments?

The answer is yes. Many people ask an expert to manage their finances and to assess the best way to distribute their assets at any given time.

This is a great option for those who do not have the time or expertise to monitor the markets and trust the experts to do the work for them.

Our Private Banking service offers these solutions. You can also register for regular savings in funds.

More information:

How should I prepare for my meeting with a financial advisor?

You should meet up with an advisor early on to decide the best possible options for you.

Book a meeting with one of our financial advisors by telephone: 440 4900 or by email:

You should bring the following information with you.

5 considerations at retirement:

  • What pension rights do you have?
  • Where and how have you invested your private pension?
  • What can you expect from Social insurance?
  • How much do you owe?
  • How do you want to invest your savings?

Book an appointment

Book an appointment with one of our advisors. Sometimes it's good to talk to someone and get advice. Choose a date and time that suits you.