Pensions and benefits

Pensioners and elderly citizens are entitled to certain payments from the Social Insurance Administration to improve their financial situation and status. Social Insurance Administration benefits must be applied for, and will not be paid out automatically.

Old-age pensions are income linked, which means that national social insurance payments are reduced if the monthly income of pensioners exceeds a certain income limit. The amount of old-age pension is calculated on the basis of an income estimate, and it is important that this is correct.

Those who work on the Icelandic labour market accrue pension rights through pension savings. Personal savings can ensure financial security in old age, on top of mandatory contributions to pension funds and the pension from national social insurance.

From the age of 67 people may apply for old age pension and related payments from TR (Social Insurance Administration). Pension payments are divided into a number of classes, and there are also some grants and benefits that can be applied for.