LSR Private Pension - for you
LSR is owned by fund members, which means that those who save into LSR Private Pension receive all the benefits of the operation of the private pension fund. We charge no fees, initial costs or change costs – all your premiums go directly into your savings right from the first payment.
Specified private pension provides flexibility
With specified private pension, you use part of the mandatory pension premium to save in a private pension fund. On the other hand, payments to the mutual insurance fund will decrease. This can be a good option for those who want more flexibility in their later years.
Private pension is one of its kind
Private pension savings are unique in that when you pay 2% or 4% of your salary into private pension, your employer adds an additional 2% to your private pension fund. It's money you don't get unless you have private pension. In addition, there is a special tax benefit from saving in private pension, so everyone should take advantage of this excellent way of saving.
The private pension savings are your personal property and will be available for withdrawal in full from the age of 60. You choose when and how you get the private pension paid, but many choose to spread payments out over several years after retirement begins, for example. Payments from traditional private pensions do not reduce pension payments from the Social Insurance Administration. In addition, private pension savings are fully inheritable if a fund member dies.
Why LSR Private Pension Savings?
- Good long-term returns on private pension plans
- A strong asset management team
- Personalised service and follow-up
- No initial cost
- No percentage of the premiums goes to costs
- No cost of transfer between investment plans
- No sales commission
- Low operating costs
Solid operation with a strong team
A strong asset management team manages the assets of LSR's private pension funds alongside other assets of the fund, which is the largest in Iceland. LSR's private pension funds have produced good long-term returns, and you can choose between three private pension plans depending on what suits you best.
Plan I
4.1%
Average actual return in past 10 years
Plan II
2.7%
Average actual return in past 10 years
Plan III
1.3%
Average actual return in past 10 years
Specified private pension
3.9%
Actual return in 2023 (first year of operation of the specified private pension)
Is specified private pension right for you?
You can choose to have up to 3.5% of your mandatory pension premium go to the specified private pension, but reduce the payments to the mutual insurance fund. Thus, a fund is created that becomes your private property and also increases flexibility when paying out your pension. However, by saving in specified private pension, pension and disability rights are reduced, so this option is not suitable for everyone.
You can have the specified private pension paid out in equal payments after the age of 62 until the age of 67. After that, the fund is available for disbursement in all respects as you see fit. Furthermore, it is possible to use the specified private pension to pay into a property loan for the purchase of your first home.
Specified private pension at LSR is a good option for you, because the premium goes entirely into your private pension fund. LSR does not charge an additional fee or a fixed part of the premium in service costs, and there are no change fees or charges if you want to stop saving in the specified private pension.
What is specified private pension?
- Part of the mandatory pension savings, which is 15.5% of salary
- Up to 3.5% of the 15.5% premium can be transferred to specified private pension
- When you pay into the specified private pension, you reduce the contribution to the mutual insurance in return
- Specified private pension will be your private property and therefore inheritable
- Can be used to pay into a property loan for a first home purchase
- Payments from the specified private pension are deducted from payments from the Social Insurance Administration