International Comparison Shows Iceland Has Best Pension System

According to the pension index maintained by the consulting company Mercer and the CFA Institute, the Icelandic pension system is at the top of the list, reports Vísir. The index was published this morning.

The index compares pension systems in 43 countries. The comparison is based on statistics from the Organization for Economic Co-operation and Development (OECD) and other multinational organizations and databases, as well as the information obtained by Mercer.

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According to the report, the top three countries with best pension systems are Iceland, the Netherlands and Denmark. Said countries have the highest points, when the points from all individual factors are combined.

Dr. David Knox, an expert at Mercer, says that the reasons behind Iceland’s success are, among other things, a relatively generous pension given from the state, the combined insurance pensions of all salary-working people, and good work practices and regulations of these pension funds.

However, Knox points out that Iceland could do better by reducing both household and government debt and raising the retirement age.

As for the gender gap in pension systems, Iceland is in fourth place. According to OECD’s calculations, the average pension for women is lower in all the examined pension systems.