Pension Applications
If you have accrued rights with Brú Pension Fund and have reached retirement age (the reference age is 67 years, but you can choose to begin payments between ages 60 and 80), you can apply for lifelong pension through our application website or click the link below. You can also request that the application be sent to other pension funds.
Application for Lifelong pension
Retirement for Divisions A and V
- You may choose when to begin receiving pension payments between ages 60 and 80. Pension rights will increase or decrease accordingly.
- You do not need to be retired to begin receiving pension payments.
- The entitlements are calculated based on your accrued rights and consumer price index.
- Old-age pension is lifelong and paid to you monthly.
- The reference age for full pension rights is 67 years.
Entitlements may vary depending on your accrued rights, consumer price index (CPI) and the division you are a member of. You can read more information about the divisions before applying. Additionally, Details about pension rights and entitlements can also be found through Brú Pension Fund's Articles of associations (in Icelandic only).
Division A members: Changes made 1st June 2017
Members who paid premiums to Brú Pension Fund before the changes, and continue to do so, will be processed through age-related accumulation of rights. Any differences are met with specific contribution from employers.
When premiums are paid, equal accumulation (1.9% of yearly earnings, unrelated to the fund‘s returns and time period of rights) and age-related accumulation are calculated. The fund member will receive the rights that are more profitable.
From the time of this change, your rights will be guaranteed and can fluctuate depending on the fund‘s profit standing. This applies to both the rights earned before 1st June 2017 and future rights of the fund member.
The reference age for retirement is 65 for fund members who continue paying with equal accumulation of rights. However, you can choose to start receiving pension payments from age 60 to 80.
Division V members: Changes made 1st June 2017
Rights that were earned before changes.
- You can begin receiving pension at age 60 to 80.
- Full pension rights apply if you begin at 65.
- If you choose to begin receiving pension earlier, the estimated pension amount goes down 0.45 – 0.65% for each month you choose to bring forward.
- If you choose to begin receiving pension later, the estimated pension amount goes up 0.56 – 3.55% for each month you move back.
- (These calculations are based on full pension rights at age 65)
Rights that are earned after changes.
- You can begin receiving pension at age 60 to 80.
- Full pension rights apply if you begin at 67.
- If you choose to begin receiving pension earlier, the estimated pension amount goes down 0.35 – 0.60% for each month you choose to bring forward.
- If you choose to begin receiving pension later, the estimated pension amount goes up 0.60 – 3.10% for each month you move back.
- (These calculations are based on full pension rights at age 67)
Overview of pension rights
Lífeyrisgáttin is a pension gateway that provides information about your collective pension rights with all pension funds as well as your pension rights with Brú Pension Fund. Pension rights and predicted retirement age may be different between funds. The pension gateway is a useful tool and can answer questions like:
- What can I expect when I stop working?
- What will my income be?
- What rights do I have and where?
- Can I access an overview of all my pension rights?
The Pension Gateway (lífeyrisgáttin)
Tax information
When you apply for pension, you need to submit tax information in the application. You must choose the appropriate tax bracket for your payments and if you wish to utilize personal tax credit. It is your responsibility to submit this information. The tax brackets in 2023, according to Skatturinn.is, are as follows:
- Tax bracket 1: 31.45% of income up to ISK 409,986.
- Tax bracket 2: 37.95% of income between ISK 409,987 and ISK 1,151,012.
- Tax bracket 3: 46.25% of income above ISK 1,151,012.
Monthly personal tax credit is ISK 59,665.
Yearly personal tax credit is ISK 715,981.
Processing applications
The processing time for pension applications is approximately two weeks. Therefore, you must submit an application before the 15th if you wish to begin receiving payments at the beginning of the subsequent month.