Your gain

Your gain is significant from private pension savings. Therefore, all employees should use this savings option.

Example of an employee saving 2% of ISK 150,000 wages per month and the employer contributing 2% of wages, with real investment rate 5% p.a.

Savings time	Total assets	Monthly pension for 7 years
20 years	2,434,827 kr.	34,287 kr.
30 years	4,892,255 kr.	68,892 kr.
40 years	8,895,148 kr.	125,260 kr.

Private pension savings is a free choice, and it is for each employee to decide whether to use this option to increase old age pension.

Those employees who choose not to use private pension savings are losing contributions from the employer and the state, and are in fact missing out on wage benefits negotiated under wage agreements.