Overview of old age and early retirement pension on the Faroe Islands

General conditions for the national basic and early retirement pension

You are as a rule entitled to a Faroese old age pension if you have been resident for at least 3 years in Denmark, the Faroe Islands or Greenland between the ages of 15 and 67. If you have worked on the Faroe Islands for a minimum of one year you are possibly entitled to a Faroese pension even though you have been resident in the United Kingdom of Denmark for less than 3 years. Contact the Faroese social insurance agency (Almannastovan) for further information if this is the case.

Entitlement to a full Faroese pension is earned after at least 40 years' permanent residence in Denmark, the Faroe Islands or Greenland. If the period of residence is shorter, the pension is calculated as 1/40 of the full pension for each year when the person concerned has been permanently resident in Denmark, the Faroe Islands or Greenland. If, for example, a person has lived on the Faroe Islands for 10 years, 10/40 of a full Faroese pension will be paid.

The pension is not paid if it amounts to less than 1/40 of the basic amount.

Permanent residence

Permanent residence in the Danish realm is comparable with signing on, on a Faroese, Greenland or Danish ship, residence abroad as an appointed representative of a Faroese, Greenland of Danish public authority in connection with a public appointment, employment in a department of a Faroese, Greenland or Danish enterprise or subsidiary, or in connection with training/education. 

Income-related pension

Old age pension and early retirement pension are income-related. An amount will therefore be deducted from the pension if you have an income of a given amount.