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Withdrawal of supplementary pension savings due to Covid-19

Among solutions announced by the Icelandic government in response to the Covid-19 pandemic, is the temporary authorisation to withdraw supplementary pension savings. The aim is to open applications for withdrawal in April 2020.

A bill providing for this solution is expected to pass through the Icelandic parliament Althingi in the next few days. Landsbankinn has begun preparing for this eventuality but cannot finalise its procedures until the bill has been passed by Althingi. Further information will be published to the Bank’s website as soon as it becomes available.

  • The aim is to open the application process and begin disbursement in April 2020.
  • Deadline to apply for withdrawal is 1 January 2021.
  • Maximum withdrawal for individuals is set at ISK 12 million.
  • Maximum monthly withdrawal is set at ISK 800,000.
  • Income tax is collected on amounts withdrawn from supplementary pension savings.

Q&A about withdrawal of supplementary pension savings: