Lífeyrissjóðakerfi

Lífeyrissjóðakerfi refers to the pension fund system in Iceland. This system is a cornerstone of retirement planning for individuals in the country, designed to ensure financial security in old age. It is a mandatory system, meaning most employed individuals contribute to it.

The Icelandic pension fund system is largely comprised of privately managed, non-profit pension funds. These funds collect contributions from both employees and employers, and the accumulated assets are then invested in a diversified portfolio of assets. The goal of these investments is to generate returns that will grow the fund's capital over time, enabling it to pay out pensions to members upon retirement.

There are different types of pension funds within the system, including occupational pension funds, which are tied to specific industries or professions, and other private funds. The specific benefits and contribution rates can vary depending on the fund and individual circumstances. Upon reaching retirement age, individuals receive regular payments from their accumulated pension savings. The sustainability and management of these funds are subject to regulatory oversight to protect the interests of contributors and beneficiaries.