Withdrawal of personal pension savings

Personal pension savings are available for withdrawal once a fund member reaches 60 years of age or receives a disability pension at an earlier age. In the latter case special rules apply to withdrawals. 


Once you reach 60 years of age you can make withdrawals from your personal pension savings by one of the following methods, or a mixture of the two.

When a fund member has reached age 60 he/she can withdraw the savings from a personal pension account in a lump sum or spread this over whatever period is desired.

The balance on the personal pension account will be paid as an annuity with lifelong monthly payments.  If a fund member selects this repayment option his/her personal right to the balance is cancelled, and any remaining balance will then not be inherited by his/her heirs.  The fund's Board of Directors will decide at the beginning of each calendar year what terms shall apply to annuities for that year.

Illness or accident

If you have to cease work due to permanent disability as the result of an accident or illness you are entitled to have the balance of your personal pension repaid over at least 7 years.


Any remaining balance in your personal pension division upon your death will be paid to your heirs in accordance with the rules of the Inheritance Act on legal inheritance. As a result of the provisions postponing payment of income tax on pension contributions, income tax is calculated on such personal pension savings but not inheritance tax.

The following documents must accompany an application after a member's death:

  1. a certificate from a District Commissioner titled Statement of Progress of Probate.
    This states who the legal heirs are;
  2. information on the bank account nos. of the legal heirs.

Children or spouses can waive their shares and, in such case, special statements attesting to this are prepared at the fund's office which the parties must sign.

How do I withdraw my personal pension savings?

You fill out an application to withdraw personal pension savings.

Payments are made from the personal pension division on the last working day of each month. The application must be received by the fund before the 20th of the month when payment is to be made.

A calculator is provided in the menu on the side which you can use to calculate the repayments from your personal pension fund based on your assumptions.