Payout

Supplementary pension savings are paid out due to:

Age
Disability
First real estate purchase
Paying down a mortgage
Death

Your first real estate purchase

You can use your supplementary pension savings to purchase your first apartment, either as a down payment or to pay down the mortgage. These payments are tax-free and can be used for 10 years.

The annual limit per person is ISK 500,000 and ISK 1,000,000 for married couples. 

You must apply for this resource within 12 months of signing the purchase agreement.

Fjölskylda

Lower your mortgage

Supplementary pension savings may be used as a tax-free payment on a mortgage. 

This authorisation applies to supplementary pension savings contributions made between 1 July, 2014 and 31 December, 2024. 

The annual limit per person is ISK 500,000 and ISK 750,000 for married couples. 

You can apply for the “mortgage allocation” resource at leidretting.is.

Kona með hund

Saving up for a down payment 

Accumulated supplementary pension saving contributions may be used tax-free to purchase housing for personal use.

This authorisation applies to supplementary pension savings contributions made between 1 July, 2014 and 31 December, 2024. 

The maximum amount for individuals is ISK 3,500,000 and ISK 5,250,000 for married couples.

You can apply for the “housing savings” resource at leidretting.is.

Hjón úti í náttúru

Payout due to age

Your supplementary pension savings are redeemable at the age of 60. Payments are subject to income tax. 

Hjón

Payout due to disability

In the event of job-related disability, your supplementary pension savings are redeemable over 7 years, based on 100% disability. Annual payout is lower and the period of withdrawal is longer in proportion to a lower disability percentage. Payments are subject to income tax. 

Vegur

Payout due to death

Supplementary pension savings are inherited in full according to the provisions of inheritance law. 

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