Do you have the freedom to choose?
Everyone between the ages of 16 and 70 who is employed in Iceland is legally required to contribute to a pension fund. By paying into a pension fund, we are guaranteed lifelong retirement income, as well as pension benefits in the event of unforeseen circumstances, such as disability, spousal, or child pensions.
Depending on the profession, some workers are required to pay into a specific pension fund, while others have the freedom to choose a pension fund for their mandatory pension contributions.
The eternal battle against time
The first workday of the new year invariably involves the same question by the coffee machine. I always struggle with this question because I make the same resolutions year after year and therefore seem terribly unexciting.
How do I start investing?
It is very common for people to feel overwhelmed when it comes to investing, and many believe that only specially educated professionals or seasoned investors can invest. There is a widespread misconception that the process is extremely complicated and not something everyone can engage in.
This is far from the truth — anyone can take their first steps in investing, and it can be a promising option for those who want to grow their financial assets.
How do I establish a new company?
It is simpler than many think to establish a company for business operations, but what is actually most complex is creating a unique position and ensuring the operational foundation of the company. Basically, the process of establishing a company can be divided into several parts.
Division of pension rights
The unequal status of cohabitants regarding pension rights has been somewhat in discussion. Pension fund laws include an equalization measure that allows for the division of retirement benefits or pension payments between spouses or cohabitants through voluntary agreements. However, there are many factors to consider when examining whether splitting retirement benefits is suitable, and it cannot be claimed that this approach is always the right one in every situation.
If a decision is made to split pension rights, the division only applies to the retirement benefits of those who are or have been in marriage or unmarried cohabitation, and to rights that have accrued during that time. The division must be mutual, equal, and cover all pension funds in which the member and spouse have rights. Legal requirements regarding health and age apply to the division of accrued rights, so this option needs to be considered in a timely manner.
What do these complex economic terms mean?
Economic concepts can often seem complex and difficult to understand what they really mean. They appear regularly in news and discussions about economic affairs, but many people don't quite know what lies behind them. We want to help you understand common concepts that are good to know, such as inflation, policy interest rates, economic growth, and indexation.
The most favourable savings option?
Additional pension savings is a type of private pension savings. It is a form of savings that allows an employee to allocate up to 4% of their total salary to additional pension savings, with the employer contributing a 2% matching contribution.