Old age pension in The Faroe Islands
There are various kinds of pensions in the Faroe Islands. This page provides information about the Faroese old age pension. You can read about other types on the page about the pension system in the Faroe Islands.
As a rule, you earn the right to Faroese old age pension if you live or work in the Faroe Islands. If you live in the Faroe Islands and work in another Nordic country, you will generally earn pension rights in the country where you work. There are special rules for agreed exceptions from this principle. If you are unsure about whether you are earning the right to a pension in the Faroe Islands, you should contact Almannaverkið (Faroe Islands Social Services). In general, you are entitled to a Faroese old age pension if you have been permanently resident for a minimum of three years in Denmark, the Faroe Islands or Greenland between the age of 15 and 67. If you have worked in the Faroe Islands for a period of at least one year, you may be entitled to a Faroese pension, even if you have been resident in the countries of the Danish Commonwealth for less than three years. For further information and guidance, contact Almannaverkið.
You earn the right to a Faroese pension on the basis of the number of years you have lived in the Faroe Islands from age 15 until you reach retirement age or are awarded sickness compensation.
You are entitled to a full old age pension if you have had 40 years of residence during that period. If this is not the case, you may be entitled to a partial pension, known as a ‘fractional’ old age pension. Fractional pensions are calculated on the basis of the number of years you have lived in the Faroe Islands during the earning period. Please note that any period of time you have lived in Greenland or Denmark is taken into account when calculating your years of residence in the Faroe Islands. However, this only applies if you are resident in the Faroe Islands. If you take your pension with you to another Nordic country, only your period of residence in the Faroe Islands will be taken into account when calculating your fractional pension. If you are in doubt about your right to a fractional pension when moving to another Nordic country, contact Almannaverkið. Any periods during which you have been covered by the social security system of another country while resident in the Faroe Islands will not be included in the calculation. However, you are not entitled to receive a Faroese old age pension if your earning period in the Faroe Islands has been less than one year.
The old age pension is paid to persons who have reached retirement age, which at the present time is 67. Under the recently-adopted pension reform, which enters into force on 1 December 2019, you may postpone receiving your old age pension. The longer you postpone your pension, the larger your old age pension will be. Under the new reform, retirement age will gradually be increased over a number of years. From 2025 on, the retirement age will be adjusted every five years, based on a calculation of average lifespans. 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. The pension supplement is regulated in relation to the pensioner’s taxable income. If both spouses are in receipt of old age pension, the pension will be regulated in proportion to the couple’s total income, with half going to each spouse. The basic amount is not taxable, while the supplement is taxable. Persons in receipt of old age pension have a special tax deduction. If you are in receipt of sickness benefit and receive an auxillary supplement or care supplement, you will retain this supplement when you transition to old age pension. In addition to the pension supplement, auxiliary and care supplements, a special personal supplement may be granted on the basis of a specific needs assessment. Personal supplements, auxiliary supplements and care supplements are not taxable. You can obtain more information from Almannaverkið: e-mail: firstname.lastname@example.org tel.+298 360 000
Staravegur 18 Postrúm 3096 FO 110 Tórshavn Faroe Islands
The old age pension is not paid out automatically, so you must apply for it. You can apply for old age pension up to six months before you reach retirement age. If you live in the Faroe Islands, you must apply for your old age pension in the Faroe Islands. You can read more about your Faroese old age pension and how to apply at Almannaverkið (in Faroese)
If you have earned the right to an old age pension from one or more other Nordic countries, you must usually apply for this in the Faroe Islands. You can read about how to apply, and what documentation you will need, at av.fo, or contact Almannaverkið for more information. If you live in another Nordic country If you live in another Nordic country and have earned the right to a Faroese old age pension, you must usually apply for it to the authorities in the country in which you live. Contact Almannaverkið if you have more questions.
If you are a Danish citizen or are covered by the legislation of a Nordic country, you can generally take your pension with you to another Nordic country. You cannot take your Danish pension with you to the Faroe Islands or Greenland. Instead, you should apply for a Faroese or Greenlandic pension. Please note that if you take your Faroese pension with you to another Nordic country, only your period of residence in the Faroe Islands will be taken into account when calculating your pension. If part of your pension has been earned on the basis of a period of residence in Denmark or Greenland, you will be entitled to a so-called ‘fractional pension’ according to the rules in force in the legislation of these countries. If you are in doubt about your right to a fractional pension when moving to another Nordic country, contact Almannaverkið. You can read more at av.fo (in Faroese)
If you live with a spouse who is also in receipt of either early retirement pension or old age pension, your pension will continue to be paid for up to three months after your death. This is known as a survivor's pension. Your next of kin do not need to do anything about your early retirement pension or old age pension in the event of your death.
If you have any questions about your Faroese old age pension, contact Almannaverkið.
You can find more information about the taxation of pensions in the Nordic Region at the Nordic tax portal, Nordisk eTax, and, in the case of Faroese pensions, at the website of the Faroese tax authority, TAKS.
In addition to the old age pension, a heating allowance is provided. The heating allowance is income-dependent. You can read more about this supplement at Almannaverkið, on heating allowances (in Faroese).
If you have any questions, please fill in our contact form.
NB! If you have questions regarding the processing of a specific case or application, or other personal matters, please contact the relevant authority directly.