The Faroese pension system
There are various kinds of pensions in the Faroe Islands. This page provides an overview of them. You can read more at the website of the Faroe Islands Social Services, Almannaverkið (in Faroese).
Statutory pensions and benefits
Old age pension is paid to persons who have reached retirement age. At the present time, the retirement age is 67. The pension consists of a basic amount and a pension supplement. All persons who have reached retirement age and who meet the ordinary conditions for the pension are entitled to receive the basic amount.
You can read more about the Faroese old age pension (state pension) and sickness compensation on other pages of the Info Norden website.
- Faroese old age pension
- Faroese sickness compensation
Labour market supplemental pension
Persons with permanent residence in the Faroe Islands, and who have reached retirement age, are entitled to a labour market supplemental pension (‘Samhaldsfasti’). The retirement age is currently 67, but will be gradually increased over the coming years. A condition for receiving the full pension is that the recipient has been permanently resident in the Faroe Islands for at least 15 years between the age of 15 and retirement age.
Persons who do not meet these conditions, either because they live abroad or because they have not been resident for long enough, are entitled to 1/40 of the labour market supplemental pension for each year that they have lived in the Faroe Islands, provided that the recipient has been resident in the Faroe Islands for at least three years between the age of 15 and retirement age.
Consequently, unlike the Faroese old age pension and sickness compensation, the labour market supplemental pension can be paid to persons who are resident in Denmark or Greenland.
Labour market pensions (collective pension schemes)
Labour market pensions are agreed upon between the labour market partners, through an agreement for a specific area of work. For more information about pension plans at your workplace, contact your employer.
A private pension scheme is a savings scheme that you set up with a bank or pension fund independently of your employer.
If you have questions about your private pension scheme, contact your pension fund or bank.
More information
- Faroese old age pension
- Faroese sickness compensation
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