Private pension payments

From the age of 60, fund members can choose between two types of payments or a mixture of both:

From the age of 60 to 67, the value of the private pension account is paid out monthly over seven years. At the age of 67, it is possible to receive the total value of the account in a lump sum.

Another choice is to convert the value of the account into an inflation- protected annuity that guarantees lifetime monthly payments. Any balance remaining in the account at the time of death goes to the Pension Fund, not the fund member´s heirs.

Illnesses or accidents

A fund member who becomes permanently ill or disabled, and is therefore unable to perform his work, has the right to receive the value of his private pension account over a minimum of seven years.

Death

The balance in the account at the time of death is divided among the fund member's heirs as provided in the Inheritance Act.

Example of private pension payments when contribution is ISK 6,000 or ISK 12,000 per month and real investment rate is 5% p.a.

Savings time	Contribution ISK 6,000		Contribution ISK 12,000
	Monthly payments for 7 years	Monthly payments for 10 years	Monthly payments for 7 years	Monthly payments for 10 years
10 years	13,042	9,773	26,085	19,547
20 years	34,287	25,693	68,573	51,389
30 years	68,892	51,625	137,783	103,250
40 years	125,260	93,865	250,519	187,729