Additional payments to people with limited old age pension rights

Additional payments are intended to aid the subsistence of individuals who live in Iceland and have no or limited pension rights in social insurance. You may receive additional payments for a maximum of 12 months at a time, and you must apply again when it expires.

Eligibility

You may be entitled to additional payments if you:

• are 67 years and older

• have no or limited pension rights in social insurance

• have income of less than 283.972 krónur per month (1 july 2023)

The amount is income-related and all income affects the calculation.

If assets in money and stocks exceed 4.000.000 krónur, there is no right to payments.

Residency requirements

It is necessary to have permanent residence, registered legal domicile and stay permanently in Iceland.

The right to payment is canceled if you stay abroad for more than 90 days in each 12-month payment period. The Social Insurance Administration must be notified of the planned stay abroad before departure and upon arrival in the country.

Foreign nationals

• If you are a foreign national, you must have a permanent residence permit in Iceland or the right to permanent residence.

  • In special circumstances, an exemption may be granted from a permanent residence permit if a foreign national holds a temporary residence permit which may be the basis of a permanent residence permit. In such cases, residence and domicile in Iceland are required for two years.

• If you are an EEA or EFTA national, you must be domiciled in Iceland for a continuous period of five years.

Amount

The maximum amount is 299.874 ISK krónur per month from 1 july 2023.

This amount may not exceed 90% of the old age pension and 90% of the household supplement. If the applicant is single, lives alone and is solely running the household, home supplements may be applied for.

The maximum amount with a household supplement can be 375.650 ISK ISK per month from 1 July 2023.

Income plan

The amount of social support is linked to income. It is therefore important that your income plan is always correct.

You can change your income plan on My pages of the Social Insurance Administration.

Application process

Before applying for additional payments, you must apply for all payments you have rights to, such as wage-related payments, social security payments, as well as domestic and foreign pension fund payments.

You can apply for additional payments for up to three months back.

To apply you need:

• electronic id

• to prepare an estimate of your future income

• information on the use of personal tax credit

In addition, it is a good to have:

• information on your financial income and that of your spouse, e.g. interest and indexation, dividends, rental income and selling profit

All documents can be submitted through My pages.

How to apply

Applications may also be made:

• at the Social Insurance Administration service centre

• with agents, who are stationed with the County Commissioners offices outside the capital area.
  

Processing time for applications

The processing time for old age pension applications is up to four weeks after all relevant documents have been handed in.

You can follow the status of applications in My pages under the Application status. If further information or documents are needed, you will receive an e-mail and notification on My pages under My documents.

Conclusion

Once you have the outcome, you will receive an e-mail and notification on My pages under My documents.

There you can see the amounts for the year in the payment schedule and change the income plan if needed.

If you disagree with the decision, you can:

• request a justification on My Pages TR,

• send a request to review the case to the Client Ombudsman,

• or sue with the The Welfare Appeals Committee.

Arrangement of payments

The pension is prepaid on the first day of each month and you receive the amount in your bank account, which is stated on My pages.