Payout
Supplementary pension savings are paid out due to:
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.
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, 2025.
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.
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, 2025.
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.
Payout due to age
Your supplementary pension savings are redeemable at the age of 60. Payments are subject to income tax.
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.
Payout due to death
Supplementary pension savings are inherited in full according to the provisions of inheritance law.
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