Greenland (GL)
Greenland is the world's largest island and an autonomous territory within the Kingdom of Denmark, known for its vast ice sheet, dramatic fjords, and indigenous Greenlandic (Kalaallit) culture.
Retirement & Pension in Greenland
State pension, contribution refunds, private pension vehicles, and international agreements.
Greenland operates its own pension system, separate from Denmark mainland, administered under Greenlandic law. The system has three layers: (1) the statutory old-age pension (alderspension), a residence-based social pension; (2) the mandatory labour-market pension (obligatorisk pension), which requires all fully tax-liable employees to save at least 11% of salary from 2025 onwards into a recognised Greenlandic pension fund; (3) voluntary individual pensions held at banks or pension providers. Key 2026 questions for expats: (1) Is your employer remitting mandatory pension contributions correctly for Greenland? (2) Do you have a Greenlandic or Danish pension fund account? (3) Are gaps opening in your home-country social security? (4) What happens to your Greenlandic pension when you leave?
State Pension
The Greenlandic old-age pension (alderspension) is a residence-based social pension funded from general tax revenue — it is not primarily contribution-based. Entitlement depends on residence history in Greenland, not on contribution records in the same way as European PAYG systems. The pension is administered by the municipality and the Greenlandic social security authority (Sullissivik). Separately, the mandatory labour-market pension (obligatorisk arbejdsmarkedspension) requires all employees fully liable to Greenlandic income tax to contribute to a recognised pension fund — these are personal savings accounts, not a pooled state PAYG fund.
Greenland retirement age for the state old-age pension was raised to 67 years on 1 January 2021. Employees approaching retirement should verify their personal entitlement date with Sullissivik (sullissivik.gl) or their municipality, as transitional birth-year rules applied during the phased increases from the earlier age of 65.
The old-age social pension entitlement is based on years of residence in Greenland, not on contribution records. For the mandatory labour-market pension: contributions are required from age 18 for all employees fully tax-liable in Greenland, continuing until pension age. If your salary base is DKK 125,000 or less per year, no mandatory pension contribution is required.
For the mandatory occupational pension, contact your pension fund administrator (e.g. PFA, SEB Pension, or other Greenland-approved provider) for a forecast of accumulated savings and projected payout. For the old-age social pension entitlement, contact Sullissivik (sullissivik.gl) or your municipality. For home-country pension forecasts, use your home-country pension authority portal. Greenland Tax Agency (AKA): aka.gl.
Mandatory pension savings are personal accounts — they can generally be paid out at pension age to a bank account anywhere in the world, subject to tax withholding and scheme rules. The Greenlandic old-age social pension entitlement for non-residents may be restricted or not payable outside Greenland depending on your residence history. Check portability with Sullissivik before departing. Home-country pensions can be received normally.
Pension Contribution Refund on Leaving Greenland
Employees with mandatory labour-market pension savings in a Greenlandic pension fund may have options to transfer or preserve their savings when leaving. The personal savings element is typically yours to keep. Some schemes allow early access or transfer to a recognised pension fund in another country under certain conditions.
Short-stay workers who have not met minimum contribution periods under their specific pension fund rules may have limited payout options. The old-age social pension is not refundable in the sense of a contribution refund — entitlement is based on residence, not a personal account.
Scheme-dependent. Most Greenlandic labour-market pension funds require you to reach pension age (67) for full drawdown. Early access options, transfers and partial withdrawals are subject to individual fund rules and Greenlandic tax law.
The mandatory labour-market pension is a defined-contribution personal savings account — your balance includes your own contributions, employer contributions (if your contract includes them) and investment returns, minus fees. This is all yours at pension age. On leaving Greenland early, the fund may preserve your balance, allow transfer, or in limited cases allow early withdrawal with tax consequences.
Contact your Greenlandic pension fund administrator before departure to understand your options: preserve, transfer, or withdraw. Obtain a statement of the full balance including employer contributions and investment returns. Consult the Greenland Tax Agency (AKA at aka.gl) on the tax treatment of any distribution. Large transfers require banking documentation.
Tax withholding on pension distributions is significant in Greenland. Coordinate timing with your final Greenlandic tax return. Keep MitID and online access active after departure until pension matters are resolved, as remote administration is difficult without digital access.
International Totalization Agreements
Greenland has a special status within the Kingdom of Denmark — it is not part of the EU and does not apply EU Regulation 883/2004 on social security coordination. Nordic citizens benefit from Nordic social security cooperation under the Nordic Convention on Social Security, but expats from outside the Nordic countries do not have formal totalization agreements with Greenland. Expats from EU/EEA countries, the USA, UK, Canada and Australia should confirm whether their home-country social security agreements with Denmark also apply to Greenland — this is not automatic. Most non-Nordic expats should maintain voluntary home-country pension contributions throughout their Greenland posting. Verify current rules via the Greenland Tax Agency (aka.gl) and your home-country pension authority.
Private Pension Vehicles
Mandatory labour-market pension (obligatorisk pension)
Obligatorisk arbejdsmarkedspensionAll employees aged 18 and over who are fully tax-liable in Greenland, with a salary base above DKK 125,000 per year. This is a legal requirement under Greenlandic pension law — not optional for qualifying employees.
No direct state subsidy. The mandatory contribution rate (employee-paid) is 11% of the A-tax salary base from 2025 onwards, rising from 10% in 2024. This amount must be saved in a recognised Greenlandic pension fund. The contribution is tax-deductible from Greenlandic income tax.
Mandatory pension contributions are deductible from the Greenlandic A-tax income base, reducing income tax at the marginal rate. Greenlandic combined municipal income tax rates are approximately 42–44% in 2026, making the tax saving significant. Confirm your exact municipality rate with AKA (aka.gl) and your tax card.
Minimum required: 11% of A-tax salary base from 2025 onwards. Additional voluntary contributions above the minimum are allowed and may also receive tax-deductible treatment — confirm limits with AKA or your pension fund.
Personal savings balance is yours. On departure, options depend on your fund: preserve until age 67, transfer to another approved fund, or in limited cases withdraw early (with significant tax consequences). Confirm options with your fund well before departure.
Employer must pay payroll to a Greenlandic-approved pension fund — check your payslip to confirm contributions are being correctly remitted. If your employer has not enrolled you, contact AKA. Pension fund providers operating in Greenland include PFA and others approved by the Greenlandic authorities.
Home-country pension (voluntary contributions)
Hjemlandspension / voluntary NI / voluntary superannuationAll non-Nordic expats who have existing home-country pension entitlements and want to avoid gaps in their state pension records while working in Greenland.
Determined entirely by home-country rules. UK: voluntary Class 2/3 National Insurance. Australia: voluntary superannuation. EU states: own non-resident contribution schemes.
Greenland does not provide a tax deduction for contributions to foreign pension schemes. Tax relief is available only in the home country under its own rules.
Home-country limits apply. No Greenland-imposed cap on remitting contributions abroad, but outward DKK transfers require standard bank documentation.
Fully portable — builds home-country pension entitlement regardless of where you live. For most non-Nordic expats, this is the most financially significant pension vehicle for long-term retirement security.
Do not let home-country records lapse without calculating the lifetime cost of the gap. UK: gov.uk/voluntary-national-insurance-contributions. US: ssa.gov. AUS: ato.gov.au/super.
Voluntary individual pension (bank/insurance)
Individuel pension / frivillig opsparingHigher-income employees and self-employed workers who want to save more than the mandatory 11% minimum or who want more investment flexibility.
No direct state subsidy beyond the tax deductibility of additional voluntary contributions (confirm deductibility with AKA).
Voluntary pension contributions above the mandatory minimum may also be tax-deductible from the Greenlandic income base — confirm with AKA and your pension provider. Investment returns within the pension wrapper are typically tax-sheltered until withdrawal.
Depends on the scheme and Greenlandic tax rules. Consult AKA (aka.gl) for the current deductibility cap on voluntary contributions.
Generally portable on departure — personal savings balance preserved or distributed at pension age. Confirm fund-specific rules on early access and transfer before departure.
Avoid high-fee, surrender-charge products marketed to expats. Prioritise transparent, low-cost providers. Grønlandsbanken and cooperating Danish banks offer savings and investment products in Greenland.
Early Retirement Options
Greenland does not have a dedicated foreign early retirement visa route. Early access to the mandatory pension savings before age 67 is generally restricted and subject to significant Greenlandic tax withholding. Planning early retirement in Greenland requires: private income (overseas pension, investment portfolio or rental income); private health insurance with Arctic medical evacuation cover; realistic assessment of healthcare availability, housing and winter costs; and a clear plan for legal long-stay status (most non-Nordic expats require a work or residence permit to stay in Greenland). Review with your employer and the relevant authority (nyidanmark.dk Greenland permits) before planning.
Pension Gap Warning
Years in Greenland may create significant gaps in home-country social security records for non-Nordic expats, particularly those from countries without totalization agreements with Greenland. The mandatory 11% Greenlandic pension contribution builds a local savings pot but does not substitute for home-country state pension entitlement. Expats should: (1) calculate their home-country pension gap before accepting the posting; (2) make voluntary home-country pension contributions throughout; (3) remember that the mandatory Greenlandic pension is a personal savings account, not a state PAYG pension — investment returns are not guaranteed. The replacement rate from the mandatory savings alone may be insufficient at Greenlandic cost-of-living levels.
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