One of the best savings methods available

With private pension savings, the employee puts aside 2–4% of their wages every month and receives an additional 2% contribution (pay increase) from the employer. The savings can be used in later years or to facilitate the purchase of a home.

Secure yourself a 2% pay increase

Based on a wage of ISK 350,000, paid-out wages decrease by a little less than ISK 9,000 per month (almost ISK 106,000 per year and a little more than ISK 3.7m over a period of 35 years). Based on a 4% real return, it returns almost ISK 19 million after 35 years. That is to say, the amount you set aside increases more than fivefold.