Investment options
Diverse investment options
Different investment options are designed to meet different needs and attitude to risk. You can choose individual investment options or opt for the Lífsbraut plan, where the private pension part of mandatory pension savings is automatically transferred between investment options as you grow older. Most fund members choose Lífsbraut.
Nominal rate of return of the pension fund Íslenski lífeyrissjóðurinn
| Investment options | 1 year | 5 years* | 10 years* | 15 years* | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|---|
| * Average annual nominal rate of return until 31 October 2024 |
||||||||||
| Líf I: Private pension | 16.6% | 7.6% | 8.2% | 8.6% | 7.8% | -8.3% | 15.3% | 14.1% | 15.5% | 3.7% |
| Líf II: Private pension | 15.1% | 6.8% | 7.6% | 7.8% | 7.5% | -7.6% | 13.1% | 12.7% | 13.6% | 3.8% |
| Líf III: Private pension | 13.5% | 6.0% | 7.0% | 7.3% | 6.9% | -6.2% | 10.5% | 11.2% | 11.7% | 4.4% |
| Líf IV: Private pension | 8.9% | 3.5% | 4.9% | 5.7% | 5.2% | -2.3% | 1.8% | 6.7% | 7.4% | 5.0% |
| Mutual division | 14.9% | 6.6% | 7.6% | 7.6% | 7.2% | -7.8% | 12.9% | 12.4% | 13.4% | 4.3% |
Real return of Íslenski lífeyrissjóðurinn
| Investment options | 1 year | 5 years* | 10 years* | 15 years* | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|---|
| * Average annual real return until 31 October 2024 |
||||||||||
| Líf I: Private pension | 10.6% | 1.4% | 3.9% | 4.4% | -0.2% | -16.1% | 10.0% | 10.3% | 12.5% | 0.5% |
| Líf II: Private pension | 9.2% | 0.7% | 3.4% | 3.7% | -0.5% | -15.5% | 7.8% | 8.9% | 10.7% | 0.6% |
| Líf III: Private pension | 7.7% | 0.0% | 2.7% | 3.2% | -1.1% | -14.2% | 5.4% | 7.4% | 8.8% | 1.1% |
| Líf IV: Private pension | 3.3% | -2.5% | 0.8% | 1.7% | -2.6% | -10.6% | -2.9% | 3.1% | 4.6% | 1.7% |
| Mutual division | 9.0% | 0.5% | 3.4% | 3.5% | -0.7% | -15.7% | 7.7% | 8.6% | 10.4% | 1.0% |
Investment strategy
According to the investment strategy, Líf I carries the greatest risk as it has the highest rate of equities. The level of risk then decreases gradually and is lowest in Líf IV, which only invests in bonds and deposits. The investment strategy for the mutual division has moderate risk exposure for long-term return on investment.
Líf I
Líf I is for those who are prepared to take risk and achieve long-term return on investment. Short-term returns may experience significant fluctuation, but the goal is long-term growth.
This may therefore suit those who have at least 20 years left of pension contribution payments.
Líf II
Líf II is for those who are prepared to take moderate risk and achieve long-term return on investment. Your portfolio’s short-term returns may experience considerable fluctuation, but the goal is long-term growth. This may therefore suit those who have more than 5 years left of pension contribution payments.
Líf III
For those who are approaching retirement or have already begun to claim their pension.
Líf IV
Líf IV suits those who are approaching retirement or have already begun to claim their pension. The focus is on providing solid, steady returns.
Mutual division
Mutual division investments carry a moderate risk exposure for long-term return on investment.
With mutual division entitlements, you have a right to life-long pension, disability pension, spousal pension and child pension.
Your pension savings
You’ll find information about your pension contributions, rights and developments in Landsbankinn’s app.
In the app’s pension section, you can:
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