Retirement AtlasA clearer view of retirement.

Iceland · ISK · Pension guide

Iceland retirement calculator

Build a spending plan around your own TR and pension fund estimates. Keep temporary private pension payments separate and see the effect on savings in Icelandic krónur.

Understand the pension system
IS / ISKMethodology

02Your retirement, in view

Today's money

Worked example. Change the inputs to explore your plan.

Accessible savings at retirement · 65

ISK 36,770,123

Today's money · After tax, in today's money.

Monthly gap · first retirement yearISK 400,000
Savings needed at retirementISK 109,052,876
Additional savings neededISK 72,282,754

At retirement, under these assumptions. This is not an extra monthly contribution.

Your accessible savings over time

Today's money
Your accessible savings over time · ISKThe annual table below contains the same projection.09.2m18.4m27.6m36.8m4558708395
Projected savings balance · ISKRetirement · 65

The first spending shortfall appears around age 73.3. Later pension payments may change the gap.

Pensions are set to zero. Add your estimates to include them.

See the year-by-year breakdown
All amounts after tax, in today's money. Age is at year end. Pension surplus is not reinvested.
Age at year endPhaseSavings addedReal growthPension incomeSavings withdrawnUnfunded spendingSavings left
46SavingISK 600,000ISK 299,491ISK 0ISK 0ISK 0ISK 15,899,491
47SavingISK 600,000ISK 317,128ISK 0ISK 0ISK 0ISK 16,816,619
48SavingISK 600,000ISK 335,111ISK 0ISK 0ISK 0ISK 17,751,730
49SavingISK 600,000ISK 353,446ISK 0ISK 0ISK 0ISK 18,705,176
50SavingISK 600,000ISK 372,141ISK 0ISK 0ISK 0ISK 19,677,318
51SavingISK 600,000ISK 391,203ISK 0ISK 0ISK 0ISK 20,668,521
52SavingISK 600,000ISK 410,638ISK 0ISK 0ISK 0ISK 21,679,159
53SavingISK 600,000ISK 430,455ISK 0ISK 0ISK 0ISK 22,709,614
54SavingISK 600,000ISK 450,660ISK 0ISK 0ISK 0ISK 23,760,274
55SavingISK 600,000ISK 471,261ISK 0ISK 0ISK 0ISK 24,831,534
56SavingISK 600,000ISK 492,266ISK 0ISK 0ISK 0ISK 25,923,801
57SavingISK 600,000ISK 513,683ISK 0ISK 0ISK 0ISK 27,037,484
58SavingISK 600,000ISK 535,520ISK 0ISK 0ISK 0ISK 28,173,004
59SavingISK 600,000ISK 557,785ISK 0ISK 0ISK 0ISK 29,330,789
60SavingISK 600,000ISK 580,487ISK 0ISK 0ISK 0ISK 30,511,275
61SavingISK 600,000ISK 603,634ISK 0ISK 0ISK 0ISK 31,714,909
62SavingISK 600,000ISK 627,234ISK 0ISK 0ISK 0ISK 32,942,143
63SavingISK 600,000ISK 651,298ISK 0ISK 0ISK 0ISK 34,193,441
64SavingISK 600,000ISK 675,833ISK 0ISK 0ISK 0ISK 35,469,274
65SavingISK 600,000ISK 700,849ISK 0ISK 0ISK 0ISK 36,770,123
66RetirementISK 0ISK 677,997ISK 0ISK 4,800,000ISK 0ISK 32,648,120
67RetirementISK 0ISK 597,173ISK 0ISK 4,800,000ISK 0ISK 28,445,293
68RetirementISK 0ISK 514,765ISK 0ISK 4,800,000ISK 0ISK 24,160,058
69RetirementISK 0ISK 430,741ISK 0ISK 4,800,000ISK 0ISK 19,790,798
70RetirementISK 0ISK 345,069ISK 0ISK 4,800,000ISK 0ISK 15,335,867
71RetirementISK 0ISK 257,717ISK 0ISK 4,800,000ISK 0ISK 10,793,584
72RetirementISK 0ISK 168,653ISK 0ISK 4,800,000ISK 0ISK 6,162,237
73RetirementISK 0ISK 77,842ISK 0ISK 4,800,000ISK 0ISK 1,440,080
74RetirementISK 0ISK 5,460ISK 0ISK 1,445,540ISK 3,354,460ISK 0
75RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
76RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
77RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
78RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
79RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
80RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
81RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
82RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
83RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
84RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
85RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
86RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
87RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
88RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
89RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
90RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
91RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
92RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
93RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
94RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0
95RetirementISK 0ISK 0ISK 0ISK 0ISK 4,800,000ISK 0

Educational estimates. Not personal financial advice. Manual pension amounts. No eligibility, tax calculation or future benefit reassessment. This model assumes steady returns and is not a probability of success.

Example: a temporary private pension payment

Assume monthly spending of ISK 400,000, combined TR and pension fund income of ISK 300,000, and a private pension payment of ISK 50,000 from age 67 until 72. The monthly savings gap is ISK 50,000 during those five years and ISK 100,000 afterwards. The first five years need ISK 3,000,000 at zero return and zero inflation. All amounts and ages are invented; no TR assessment is implied.

Understand the pension system

Iceland

Common questions

Will this adjust TR when other income changes?

No. It uses the TR amount you enter. If a fund payment changes, ask TR to review the effect before updating your plan. The model does not reassess income limits, residence or eligibility and cannot represent every change in a benefit schedule.

Can I enter my entire private pension balance as savings?

Only include money in the savings field if it is available when the plan needs it, allowing for applicable taxes. If you entered the same private pension as monthly income, exclude its capital. The tool does not unlock restricted savings or convert a gross balance into net cash.

Does a zero end age mean my private pension lasts forever?

No. Zero tells this model to keep paying through the planning horizon. It does not establish a right to lifelong payments. Use the actual planned end age for a limited private pension payment.

Methodology · 1.0

Methodology

One consistent money basis

All inputs and results use today's purchasing power. Enter net pension payments and spending after tax. The net return is nominal, after investment taxes and fees. Monthly real growth factor = ((1 + net return / 100) / (1 + inflation / 100))^(1/12). Savings contributions remain constant in real terms and arrive at month-end until retirement.

How the income gap is funded

From retirement, the monthly gap is max(0, spending − active pension payments). Savings grow first, then a month-end withdrawal funds the gap up to the available balance. Excess pension income is not reinvested. The capital needed at retirement is the sum of these future gaps discounted at the monthly real return; no future pension is borrowed against.

What the estimate leaves out

Amounts stay constant in real terms: the model assumes payments keep pace with inflation, which your actual pension may not do. Ages use whole years; no calendar dates, pension accrual, changing taxes, benefit offsets, future lump sums, market volatility or inheritance target are modelled. Income before your entered retirement age is excluded. Changing a start age does not recalculate the payment amount. Only combine streams that share the same dates.

Official sources & pension overviews

Sources checked . Manual pension amounts. No eligibility, tax calculation or future benefit reassessment. This model assumes steady returns and is not a probability of success.