Pension rights

Working in Europe | Pension rights | Faroe Islands

When retiring from employment or being unable to work due to disability, pension can be received from several sources.

 

Retirement pensioners in the Faroe Islands receive a national retirement pension and a supplementary labour market retirement pension. Most pensioners also have a private retirement pension.

All residents with Danish citizenship who have lived in the Danish Realm for at least 3 years between the ages of 15 and 67 and foreign citizens who are married to a Danish citizen, are entitled to a national retirement pension at the age of 67.

In order to obtain a full retirement pension in the Faroe Islands, the pensioner must have resided in the Danish Realm for at least 40 years. If the period of residence is shorter, the pension is calculated as 1/40 of the full pension for each year of residence in the Danish Realm.

By agreement with the Nordic countries, Nordic citizens have the right to national retirement pension in the Faroe Islands under the same conditions as Danish citizens.

Working periods in another Nordic country count as a basis for obtaining and calculating the retirement pension.

Citizens from countries outside the Nordic region do not have the right to national retirement pension in the Faroe Islands. This also applies for persons with permanent residence permit in the Faroe Islands.

Non Nordic citizens who have lived in the Faroe Islands for at least 10 years may under certain circumstances be granted a partial retirement pension.

The Faroese national retirement pension is composed of a basic amount which is independent of any outside income, and an additional grant that fluctuates depending on the amount of outside income, i.e. the total income of the pensioner and his or her spouse.

For unmarried pensioners the basic national retirement pension is DKK 3,589 and the additional grant is DKK 3,771 per month. For married pensioners the basic pension is DKK 2,733 and the additional grant is DKK 3,031 (2016).

Read more:

Department of Social Services (in Faroese)