Social Insurance Administration
Eligibility for old-age pension
27th July 2023
It is noted that the average age for pensioners is 67 years old, but if an individual waits to apply for a pension beyond that time, then they can apply for their right up to two years back. If an individual does not apply for his/her right back in time, then his/her rights have not been cancelled, but he/she will enjoy a permanent increase in his/her rights in return for the time that the pension has been deferred. In addition, an early retirement pension can be applied for from 65 years old, in return for a permanent reduction in rights.
Pension payments are based on the fact that the pensioner's rights are income-related, and therefore the amount of the pension depends on how much income the person has in addition to the institution's payments. Thus, the right to an old-age pension does not lapse until the individual has more than ISK 726 thousand per month in addition to the Social Insurance Administration's payments. In addition, pensioners can earn ISK 200,000 per month without cutting their pension payments with a special income limit on the income.
The arrangements for the payment of old-age pensions are based on the Social Security Act, which the Social Insurance Administration is responsible for implementing in relation to old-age pension payments.