In Arion's Additional Savings, you can choose between seven investment options, plus Ævilína (Lifeline), where your balance automatically transfers between investment options to reduce portfolio risk as you age. It's easy to change your investment option through My Pages.
The goal is to invest 73% in stocks and 27% in bonds. Fluctuations in returns can be considerably high in this path. The expected return is therefore somewhat higher than in lower-risk options.
Asset allocation of Lífeyrisauki 1
Age in Lifecycle | 30 years and younger |
Nominal return last 10 years | 7.8% |
Return volatility | 5 out of 7 |
The goal is to invest 56% in stocks and 44% in bonds. Fluctuations in returns can be considerably high in this path but less than in savings path 1. The expected return is therefore lower than in savings path 1.
Asset allocation of Lífeyrisauki 2
Age in Lifeline | 31 to 40 years |
Nominal return last 10 years | 7.1% |
Return fluctuations | 3 out of 7 |
The goal is to invest 37% in stocks and 63% in bonds. Fluctuations in returns are lower than in savings option 2, and the expected return is therefore lower.
Asset allocation of Lífeyrisauki 3
Age in Ævileið | 41 to 54 years |
Nominal return over the past 10 years | 6.7% |
Return volatility | 2 out of 7 |
The goal is to invest 22% in stocks and 78% in bonds. Fluctuations in returns are lower than in other savings options, and the expected return is therefore lower.
Asset allocation of Lífeyrisauki 4
Age in Ævilína | 55 to 60 years |
Nominal return over the past 10 years | 6.2% |
Return fluctuations | 3 out of 7 |
The objective is to invest 100% in bonds issued by the government, domestic companies, and deposits. The goal is to achieve good returns with emphasis on risk diversification and reliable debtors.
Asset allocation of Lífeyrisauki 5 - Domestic Bonds
Age in Lifecycle | 61 years and older |
Nominal return last 10 years | 6.4% |
Return volatility | 3 out of 7 |
The objective is to invest 85% in foreign stocks and 14% in foreign bonds. Fluctuations in returns can be considerably high. Investments are made in both individual assets and funds, with strong emphasis on achieving maximum risk diversification.
Asset allocation of Lífeyrisauki - Foreign Securities
Not part of Ævilína | |
Nominal return last 10 years | 7.5% |
Return volatility | 5 out of 7 |
Premiums are deposited into a deposit account that bears inflation-indexed interest rates according to Arion Bank's interest rate table. This option is intended for those who want to minimize fluctuations in the value of their assets as well as take advantage of inflation indexation.
Asset allocation of Lífeyrisauki - Deposits
Not part of Ævilína | |
Nominal return over the past 10 years | 5.8% |
Fluctuations in returns | 3 out of 7 |
The main role of Arion Bank's supplementary pension savings - Lífeyrisauki is to grow the pension savings of fund members and ensure them the highest possible returns at any given time and over the long term with respect to risk.