Lykillinn að góðri framtíð er að huga að henni strax

The key to the future is planning for it

A membership in Lífsverk pension fund lays the foundation for a carefree retirement.
What you gain is a more secure future.


Why Lífsverk?

  • Lífsverk is an open pension fund for university graduates. Everyone who has completed an undergraduate degree can apply for membership.
  • Better benefits
    Rights earned through membership contributions are generally higher for members in Lífsverk than in other pension funds, partly because of a lower disability rate among fund members.
  • Social responsibility
    Lífsverk's responsible investment policy aims to invest only in companies with a clear corporate social responsibility policy. The fund's purpose is also to encourage responsible governance and increase transparency.
  • Member democracy
    All board members are also fund members, and elected by other fund members. Lífsverk was the first pension fund to implement electronic board elections.

Since 2014, Lífsverk has grown more than most Icelandic pension funds.

Apply for membership


You have a choice

Lífsverk offers two investment options for mandatory contributions.

  • Mandatory pension savings
    The mandatory contribution (at least 12% according to the law, but 15.5% from July 1, 2018, in accordance with most common union wage agreements) is all deposited to a mutual fund. Your pension is then a percentage of the overall contributions you make during the course of your career.

    This option generates a higher life-long pension amount and offers a higher insurance protection if needed in case of disability, pension payments to a surviving spouse or child allowance./support

    Accumulated rights through the mutual insurance funds are not inheritable.
  • Combined savings option
    10% of the mandatory contribution (which is at least 12% according to the law, but 15.5% from July 1, 2018, in accordance with most common union wage agreements) is placed in the mutual fund. The remaining percentages are paid into private pension savings.

    The payout options are more flexible, which is ideal for those who want a higher disposable income upon retirement.

    Three different investment strategies are offered for the private pension contributions, where expected return on investments are different.
    Your private pension is fully inheritable.

More about private pension savings


Save and get a raise

All employees can choose to contribute to private pensions savings and can choose between plans that vary in expected returns and carry different levels of investment risks.

  • How does it work?
    When you choose personal pension savings, your contribution can be either 2% or 4% of your net salary. Your employer then adds the equivalent of 2% of your net salary to your personal pension savings.
  • Tax benefits and protected savings
    Personal pensions are not taxed until payout and are protected from collection actions, meaning your personal pension savings cannot be collected or levied on if you fall bankrupt.
  • Affordable mortgages
    All fund members who contribute to personal pension savings can apply for low-interest mortgages through the fund. First-time real estate buyers can apply for a mortgage for up to 85% of the property's market price.

Read more about private pension savings


Low-interest mortgages for fund members

Mortgage of up to 85% of the market price

You can apply for a mortgage through the fund of up to 45 million ISK, meaning you might not need an additional mortgage from a bank.

Moreover, you can apply for a supplementary mortgage of up to 20 million ISK. The application is rated depending on how much is already secured against your property and the amount must fall within 70% of the market value indicated on a recent purchase agreement or an official real estate evaluation of the property. When buying your first property, however, the total amount can be up to 85% of the property’s market value.

You can apply for a mortgage if you are a contributing fund member or are receiving your pension from Lífsverk.

85% LTV

More on loans