SL Pension Fund is open to all employed individuals working in Iceland, and is completely independent of banks or trade unions. Whether you as an employee have a choice of pension funds, depends on what field of work you work in and your wage agreement. Visit the funds website to learn more https://www.sl.is/
Becoming a member at SL pension fund
You can choose to pay into private pension savings, as well as additional savings, the original purpose of which was to increase people’s income after reaching retirement age. Today, you can also apply to use your private pension savings when buying your first apartment or to pay off a mortgage.
Personal pension savings are optional, in addition to statutory pension savings and these are your personal property. Employees and freelancers can pay up to 4% of their total salary into a private pension fund and receive an average of 2% in the form of a counter-contribution from the employer.
Why pay into a pension fund?
The purpose of pension funds is to guarantee pensions to all working people (fund members) after retirement, for the rest of their lives. All working people in the country, from the age of sixteen to seventy, are thus obliged to pay into a pension fund, which is a common fund for all and creates a basis for financial security in later life.
As an employee, you pay 4% of your monthly salary to your pension fund and your employer pays a counter-contribution to the same pension fund, which should be in the amount of 8%, for a total of 12% of the overall salary.
By paying into a pension fund, you accumulate the right to receive a lifelong pension at retirement, but you are also insuring yourself and your family in the event of an event that causes a loss of income or disability.
Why choose the SL pension fund?
- SL Pension Fund measured the best long-term return of Icelandic pension funds over a 20-year period (audit conducted by Verdicta in 2018).
- SL Pension Fund follows a prudent investment policy and a policy of responsible investment and has never had to reduce the pension rights of fund members.
- SL Pension Fund is open to all employees as well as freelancers, and is independent of banks and trade unions. If you can choose a pension fund or work freelance, then SL pension fund is for you.
Borgartún 29, 105 Reykjavík, Iceland
+354 510 7400