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Pension Funds

In Iceland there is a work-related pension system. Payments from these funds impact social security payments.

All working individuals and their employers are obligated to pay certain minimum premiums into a pension fund. The pension fund pays a pension because of old age and invalidity and death benefit. The right to payments from a pension fund depends on the paid-in premiums of fund members and the length of the payment period. Further information about these rights is obtained from the relevant pension fund.

There is a possibility of supplemental pension saving beyond the minimum premium into a personal pension fund or into the pension saving account of a financial company. The wage payer pays a certain matching contribution, which varies according to wage agreements. Payments from a personal pension fund have no effect on social security payments.

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