Private Pension

Private pension savings have many benefits. Private pension savings are voluntary but serve as an important pillar of the Icelandic pension fund system. Private pension savings are an addition to the retirement pension system and fund member then decides how to withdraw his/her savings once they reach 60 years of age. Private pension savings are among the best savings methods available. A fund member can make a collective bargain agreement providing for a 2% employer’s contribution to an employee’s personal pension fund. Meaning that the person who contribute at least 2% and up to 4% of their savings in this manner receive a 2% contribution from their employer, effectively giving them a 2% raise.

Birta Pension Fund members can choose between three portfolios for the personal pension savings. When choosing savings option, it is wise for members to select portfolio according to their age, investment policy and the risk they are willing to take.

Information on portfolio’s rate of return can be found here.

Private pension agreement

We strongly recommend filling out agreeement with an electronic ID, but the agreement is only available in Icelandic. If you need help filling out the agreement, please contact our experts.

Application for payment from Private pension

We strongly recommend applying with an electronic ID, but the application is only available in Icelandic. If you need help filling out the application, please contact our experts.

The specified personal pension is a special type of private pension savings that increases flexibility at retirement. Anyone who is a member of the collective agreement between ASÍ and SA can contribute up to 3.5% of their wages into specified personal pension. Making this a a part of the 15,5% premium paid into the mutual pension savings. Fund members can choose whether the increased contribution (3,5%) will be placed in part or in full in a specified personal pension. If no notice of such choice is sent the entire increase will go into the retirement pension. The specified personal pension gives right to surviving spouse and children, like other private pension savings.

Fund members can withdraw from specified personal pension at the age 62.

Applicaton process

We strongly recommend applying with an electronic ID, but the application is only available in Icelandic. If you need help filling out the application, please contact our experts.