Specified Private Pension
Enjoy greater flexibility with your pension savings. You can allocate up to 3.5% of your mandatory pension contribution to a specified private pension instead of a collective pension fund.
Benefits of specified private pension
Your private pensionFully inheritable
Accessible from age 62Annual payments until age 67
Strong long-term returnsFavourable returns over the long term
No feesNo set-up, transfer or withdrawal fees
Buying your first homeYou may be able to use your savings towards your first home
Protected in bankruptcyYour savings cannot be seized
What is a specified private pension?
As an employee, part of your salary is paid into mandatory pension savings. This is required by law and amounts to 15.5% of your salary: 4% from you and 11.5% from your employer.
You can choose to allocate up to 3.5% of this contribution into a specified private pension. This is your own private pension, rather than a contribution to a collective pension fund.
Why does this matter?
If you have already built up a lifelong pension with your mandatory pension fund, specified private pension savings can offer greater flexibility. These savings are your asset. They are inheritable, available from age 62 and protected from seizure if something unexpected happens.
You choose how to invest your specified private pension savings, and which custodian suits you best.
To get started, enter into an agreement with us. Then contact your mandatory pension fund and request that up to 3.5% of your mandatory pension contribution be transferred to us.
Frequently asked questions
Do specified private pension savings affect my rights under the collective pension scheme?
How do I set up my specified private pension savings?
How do I transfer specified private pension savings to Íslandsbanki?
Can I keep all my private pension savings in one place?
How are specified private pension savings invested?
Are returns subject to capital gains tax?
Are specified private pension savings inheritable?
When can I withdraw my specified private pension savings?
Do payments from private pension savings affect payments from Tryggingastofnun (the Social Insurance Administration)?
Can I use my private pension savings to buy a home?
Book an appointment with an advisor
Sometimes it helps to talk to someone and seek advise.