The Pension System
A community-curated guide by Iranian-Icelandic Community
Retirement Age and Contributions
Retirement age in Iceland is 67–70, when pension payments from retirement funds begin. Pension rights are linked to duration of residency. The minimum mandatory contribution is 15.5% of wages: 4% from the employee and 11.5% from the employer. An optional additional 4% from the employee (with employer match) is recommended for supplemental savings.
State Pension and Disability
The State Social Security Institute (www.tr.is) provides old-age pension to residents 65+ with a minimum of 3 years of residency. Disability pension is available for ages 18–67. Pension fund amounts depend on individual contribution history and fund performance. Some funds are open to all; others are restricted to specific professions.
Unemployment Benefits
The Directorate of Labour (www.vmst.is) manages unemployment benefits. Benefits are temporary (maximum 30 months) and available to ages 18–70 with valid work permits; applicants must actively seek work. International protection holders may qualify. The Directorate has a head office in Reykjavík and branches nationwide.