Calculation of residence for pension rights

The residence rate is a calculation of a person's residence in Iceland and tells what a person's rights are to payments from the Social Insurance Administration (TR).

Overview

In general, it is assumed that full pension rights arise after 40 years of residence in Iceland between the ages of 16 and 67. If 40 years of residence is not reached, it is taken into account how long the residence in Iceland has been.

Employment abroad and collection of rights

If you have lived and worked abroad, it affects the calculation of your residence rate.

• If you lived and worked abroad, you generally paid social security in the country where you lived and worked.

• If you worked abroad but lived in Iceland, you generally paid social security in the country where you worked. Exemptions are for posted workers and others who have received an A1 certificate or an insurance statement.

Studying abroad and collection of rights

• If you were temporarily studying abroad, the general rule is that you are covered by Icelandic social security. Exceptions are for students in the Nordic countries, who must move their legal domicile to the country of residence. Read more about social security and study abroad.

• If you were temporarily studying abroad and worked in the country of residence, the general rule is that you have paid social security in the country in which you worked. Exemptions are for students who have received a confirmed tax residence for students abroad.