The amounts of pension payments are always in line with contributions made throughout your working life. Your contribution is 4%, and your employer pays 11.5%. Therefore, the minimum contribution is 15.5% of your total salary.
With your contributions to the fund, you ensure:
- Lifelong pension: Inflation-protected monthly payments from the start of retirement until the end of life.
- Disability pension if you lose 50-100% of your working capacity.
- Spousal pension for your surviving spouse in the event of your passing.
- Child pension for your children and adopted children in the case of disability or death.
- Loan rights after 6 consecutive months of contributions or a total of 36 months of contributions.
How much do I pay into my pension?
Why do I get more rights for my payments when I´m younger?
You get the most for your money when you are younger because your contributions have more time to grow through investment returns.
Would you like to gain more private savings or increased benefits – without paying more?
Those who want to increase their private savings can allocate a portion of their monthly contributions to private pension savings. This way, you can choose to increase your private savings at the expense of your entitlements and select from three investment options. You select this option on My Pages.
Do the math! It pays off.
Apply on My Pages. Here, calculations assume a 5% return and accumulation until the age of 67.
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You already have personal pension savings?
If you already have personal pension savings, we encourage you to compare the costs and returns. At LV, there are no fixed term contracts and no fees or charges for withdrawals or deposits on loans. Only direct operating costs are deducted, which are minimal and precisely specified each year on the key information documents for investment options.
We offer the best of both worlds
Pension funds are not all the same, and LV is fundamentally a traditional collective fund. This means that we emphasize good retirement benefits and strong insurance coverage in case you cannot work due to serious incidents.
We ensure the security of you and your loved ones
LV’s disability and spouse´s protection is among the best available in pension funds and is significantly above the minimum requirements set by law. If you want to secure the financial well-being of yourself and your closest ones in the best possible way, LV is a good option for you.
2% salary increase and tax-free payout for your first home
Personal pension savings (also called additional pension savings) are particularly advantageous because you receive an employer contribution that equates to a 2% salary increase. This savings can be used to pay down loans, purchase your first home, increase your income, and fund adventures after the age of 60.
Eligible for loans after just 6 months
You are entitled to a loan if you have paid pension contributions or into your personal pension savings in 6 of the past 12 months prior to your application, or for a total of 36 months prior to your application. You must also have your domicile registered in Iceland. You can choose between inflation-indexed loans or non-indexed loans with fixed or variable interest rates.
About Lífeyrissjóður verzlunarmanna (Pension Fund of Commerce)
Over 186,000 fund members have entitlements in the fund. Among the largest industries represented are retail and services, information technology and telecommunications, transportation and manufacturing, finance and insurance. Additionally, self-employed individuals form a large group of fund members.
Those who receive wages under the collective wage agreements of VR and SA contribute to the Pension Fund of Commerce.
Our Fund Members Are
Number of members
186
thousand
11 thousand employers
Pensioners
25
thousand
Contributing members
38
thousand
47.4 billion in contributions
Gender
53/47
%
53% female
47% male
Governance
The pension fund operations are based on the Pension Fund Act and related investment laws, and are subject to the supervision of the Financial Supervisory Authority. The articles of association specify the rights and obligations of fund members, as well as all the fund's authorizations and responsibilities towards its members. The fund's representative council appoints the board and votes at the annual meeting on behalf of the founding member associations, VR, SA, and FA.
Members of the Board
The board consists of eight members. Four are appointed by the VR labor union, three by the Confederation of Icelandic Employers (SA), and one by the Federation of Icelandic Employers (FA).
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Council of Representatives
Members of the Representative council vote at the fund's annual meeting on behalf of the member associations. The representative council is composed of 50 representatives from many of the largest workplaces in the country.
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Articles of Association
The Articles of Association prescribe the entitlement of the fund members. Amendments enter into force when they are approved by the AGM and confirmed by the Minister of Finance.
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Asset portfolio and investments
The fund's asset portfolio is the second largest among Icelandic pension funds and is invested in well-diversified portfolios of stocks and bonds, both domestically and internationally. The fund's investment strategy is based on delivering good long-term returns. Each of the fund's asset portfolios has a defined investment policy, which is reviewed annually by the fund's board and published on the fund's website.
Ester Rúnarsdóttir
advisor
Pension entitlements and pension savings will be the most valuable savings for most people over their lifetime. Stay informed about your rights and contact us if you want to learn more. The interests of our fund members are our only interests.
Starting to work in Iceland
When you start working in Iceland you must select a pension fund. You can also choose to add contributions to personal pension savings.
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First property purchase?
Your personal pension savings can help you finance your first apartment - tax-free! Take advantage of the most efficient form of savings.
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Using My Personal Pension Savings
You have many options on how you choose to use your personal pension savings.
