Personal pension savings is additional savings on top of mandatory savings. You choose how and where it is invested by choosing a custodian.
Specified personal pension is part of mandatory savings for which you can also choose a custodian.
Simply More for You
You need to choose where invest you personal pension savings – this is called choosing a custodian. Choose carefully so that your savings go into returns rather than service fees.
Everyone needs to choose a custodian for their private pension savings – whether it is regular personal pension savings or specified personal pension savings. There are many options: Icelandic custodians (pension funds and banks) or foreign insurance companies.
In some cases, sales agents charge substantial transaction fees that can amount to hundreds of thousands of ISK per contract. Many people do not realize this cost when making the contract. With pension funds in Iceland, everything you pay goes directly into the fund for investing, the operating cost is reflected in the rate at any given time.
The lower the fees → the more you save for the future. Simply more for you.
When you choose LV
- You choose an investment option that suits you.
- You have no commitment period and no additional fees for changes.
- All payments go directly to the fund's returns - not to fees.
- You choose to be able to change your return method at any time or stop paying without cost.
- When you withdraw your savings, it can be in one lump sum or in several payments – you choose.
- You always have an overview of the status on My Pages.
- Returns are easily accessible.
- Operating and trading costs are reflected in the investment option's rate of return and are clearly stated in the key information documents for each return option.
When choosing a foreign insurance company for your savings
- You will normally have to commit to an insurance contract that is usually long-term, even many decades.
- You commit to paying a certain amount for a certain period of time.
- Initial costs are often paid at the time of signing the contract and other regular fees throughout the contract period are deducted from the payment, so only a portion of what you pay goes into your savings.
- Termination, changes or relocation can result in considerable costs.
- The guaranteed refund of premiums you have paid is around 60-90%.
Life changes. It's good to have choices and be able to adjust your savings to suit your circumstances.
LIVE Pension fund
Foreign insurance companies
Contract
The personal pension savings agreement is 2 pages in Icelandic.
The agreement for the specified personal pension is 3 pages in Icelandic.
An insurance contract for a fixed number of years, often dozens of pages long.
Text in both German and Icelandic. German text prevails over Icelandic.
Contract commitment
None
Commitment for a number of years, often until you are 60 - 67 years old.
Fees
No additional fees ; payments go undiminished into your savings. Operating and transaction costs are reflected in the rate (returns) of the investment option.
Initial and recurring fees deducted from your deposits
Changes
Easy and free of charge
Can be limited and costly
Payment
Flexible: single payment or spread out according to your needs
Depends on agreement; often fixed rules
Overview and accessibility
The status is updated daily on My Pages. Consultants provide good service and information.
Varies by company but generally inaccessible and opaque
Transfer of funds
Within 2 months
Typically 3-6 months
Contract
Contract commitment
Fees
Changes
Payment
Overview and accessibility
Transfer of funds
LIVE Pension fund
The personal pension savings agreement is 2 pages in Icelandic.
The agreement for the specified personal pension is 3 pages in Icelandic.
None
No additional fees ; payments go undiminished into your savings. Operating and transaction costs are reflected in the rate (returns) of the investment option.
Easy and free of charge
Flexible: single payment or spread out according to your needs
The status is updated daily on My Pages. Consultants provide good service and information.
Within 2 months
Foreign insurance companies
An insurance contract for a fixed number of years, often dozens of pages long.
Text in both German and Icelandic. German text prevails over Icelandic.
Commitment for a number of years, often until you are 60 - 67 years old.
Initial and recurring fees deducted from your deposits
Can be limited and costly
Depends on agreement; often fixed rules
Varies by company but generally inaccessible and opaque
Typically 3-6 months
How do I choose?
A few things for you to consider:
- Overview: Do you want to be able to watch your savings grow?
- Costs: How much of your money goes to expenses?
- Flexibility: Can you change your mind? Could you change your investment plan or stop payments without any cost?
- Payout: Do you want to receive everything at once or in multiple payments?
Frequently Asked Questions
What is personal pension savings and what is specified personal pension?
Can I change my investment option at any time?
Yes. With LV, it's free to change investment options at any time and you can do so on My Pages whenever it suits you.
Can I stop paying temporarily?
Yes. At LV, you can stop payments at no cost and without giving any notice - and start again whenever it suits you.
When are my savings available?
Once you reach withdrawal age, your savings are fully available and you can decide whether to withdraw your savings in one or more payments, whatever is best for you.
Can I change my custodian?
With us, you have the freedom to change your mind! You can transfer your balance between custodians at no cost.
If you have signed an insurance agreement with a foreign custodian, it may cost you if you decide to stop paying or transfer your balance to another custodian before the agreement expires.
Do I have flexibility?
With us, you can switch between investment options or transfer funds to other custodians at no cost, and you can decide how you withdraw your private equity savings when you reach withdrawal age.
Where do I see my status?
It is easy to track premium payments on My Pages at LV. Under the “séreign” tab, you will see the payment for each month as well as the return for the year. You can track the return between months on the website.
Can I use my personal pension savings for a loan or for a first home purchase?
With us, you can use both personal pension savings and specified personal pension up to the maximum permitted limit at no cost. With foreign insurance companies, in some cases you need to leave a minimum amount and fees may be charged for the service.
Operating and trading costs of LV investment options 2024
Ævileið I
Operating and trading costs total 0.28% and are reflected in returns.
Ævileið II
Operating and trading costs total 0.3% and are reflected in returns.
Ævileið III
Operating and trading costs total 0.29% and are reflected in returns.
Verðbréfaleið
Operating and trading costs total 0.48% and are reflected in returns.
