The aim of the policy is to ensure that employees feel that their retirement is handled flexibly and honestly, and it is therefore vital that the subject is discussed well in advance of retirement. According to Arion Bank’s rules employees retire at the age of 67.
How flexible an employee’s retirement will be is a matter of negotiation between the employee and management. The aim is to support employees through the period of transition ahead, i.e. from being in full-time employment to being retired from work. When a decision on retirement is made, the rights and other factors set out in employment agreements, rules and Arion’s guidelines are taken into consideration.
A meeting between the manager and employee, where they discuss the retirement policy, is held in the year in which the employee turns 61, earlier if requested.
The employee is invited to attend a course which addresses the changes to a person’s life upon retirement.
Arion Bank is keen to accommodate the employee’s wishes with respect to retirement due to their age, e.g. changed working hours or duties in the final months of employment, taking into account the wishes of the person in question and of the company.
From the age of 62 the employee is given the option of reducing their working hours or retiring and receiving the equivalent of six months’ salary without working. It is assumed that the employee has at least five years of length of service at the time of retirement in order to meet the requirement of equivalent of six months’ salary.
The salary can be spread out over a period of up to two years, or the employee can retire and receive a salary for six months without working. If the employee is employed on a part-time basis, the terms of retirement are in accordance with the employment ratio. An employee cannot receive a salary from the company after the age of 67.
Upon retirement a farewell coffee party is arranged in consultation with the person retiring.
Retired employees and their spouses are invited to coffee mornings where they can catch up with former colleagues. After retirement, employees are invited to the next annual party with their spouses.
Updated 2 June 2026.