The age supplement for an old-age pension is a maximum of 32.917 ISK for individuals who received their first disability assessment between the ages of 18 and 24. The amount decreases by 5% from the age of 25 until it is phased out at the age of 44. It is not paid to those who receive their first disability assessment after the age of 43.

The age supplement is income-related. The combined amount of the old-age pension and the age supplement is reduced by 45% of income exceeding the exemption limit, until the allowance is discontinued.

Let's take the example of an individual who received their first disability assessment at the age of 30. They started receiving an old-age pension at the age of 67. They are not entitled to a home supplement and are entitled to ISK 300,000 per month from a pension fund. No other income.

Basic amounts

Basic amount of old-age pension: 365.592 ISK.

Basic amount of age supplement: 23.042 ISK (32.917 ISK*70%).

Total basic amount: 388.634 ISK.

Effect of income

General exemption limit: 43.658 ISK.

Effect of income: 45%

Income affecting the calculation: 115.354 ISK ((300.000-43.658 ISK)*45%)

Calculation

Total basic amount 388.634 ISK.

- Income affecting the calculation 115.354 ISK.

Allowance entitlement 273.280 ISK.