Retirement and pension payments

Membership in LSR's Division A gives you extensive rights from the first premium payment until the end of your life. With Division A of LSR, you are entitled to a lifelong pension that you can receive from the age of 60, a disability pension in case of loss of work capacity and a spouse pension in the event of death. The right to a child pension may also arise in the event of disability or death.

Retirement

Secure income for life

Disability Pension

Helps if work capacity is reduced

Spouse pension

Paid to the spouse if the fund member dies

Child pension

Until the age of 22 in case of disability or death of a fund member

Life-long pension

Retirement rights are based on the age of 67, but in Division A it is nevertheless possible to start taking a pension at any time between the ages of 60-80. The amount of monthly pensions increases or decreases depending on whether retirement begins before or after age 67.

Pension is paid monthly at the end of each month and the amount depends on the rights earned over the working life. On My Pages, you can see the rights you have accumulated and can estimate rights in the future. Pensions are indexed and therefore change in line with the consumer price index.

LSR’s Division A pensions

Can be started at any time from 60-80 years
Paid monthly for the rest of your life
Can be taken alongside paid work
Payments are indexed

Work alongside pension

Fund members can receive a pension from the LSR’s Division A while continuing to work, and salary payments or other income do not affect the amount of pension from Division A. If you are paid a salary after you begin to receive pension, the accrual of rights continues until the age of 70.

In age-related rights accrual, rights accrual does not change even if a fund member has started receiving a pension.
In equal rights accrual, premiums paid to the fund at the same time as pension is paid out provide 50% less rights than premium payments before retirement begins. However, this does not apply to rights acquired from work while receiving a half-pension. You can read more about equal and age-related accruals here.

At the age of 70, pensions are then recalculated and additional rights accumulated since retirement are added. No payments are made to the pension fund after the age of 70.

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Half-pension

You can take a half-pension from the age of 60. If this is done, payments will start on half of the pension rights, while the other half will be saved and increased in accordance with the contribution payments and the fund's rules on the postponement of pension payments. When applying for a full pension, the retained rights are then added to the pension payments. Full pension can be deferred up to the age of 80.

If you apply for a half pension from LSR you can ask that we also forward the application to other Icelandic pension funds.

At the same time as receiving a half-pension from LSR's Division A, you can apply for payments of a half old-age pension from the Social Insurance Administration in accordance with the rules of the institution. For this, other conditions of the Social Insurance Administration must be met, such as that the work rate is no more than 50% per calendar year and that you have applied for a half pension from all pension funds to which you are entitled.

Further details are available on the Social Insurance Administration website