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The Icelandic pension system receives top marks

27. October 2025

For the fifth year in a row, the Icelandic pension system has received top marks in an international analysis covering 52 countries. The Icelandic system earned the second-highest score of all the nations included in the study.

The Icelandic flag among other nordic flags

The study is conducted annually by the consulting firm Mercer and the CFA Institute. This is the fifth consecutive year that Iceland’s pension system has been included in the analysis, and every year it has ranked either first or second.

This year, Iceland received an overall score of 84 on the index, up from 83.4 the previous year. The increase is largely attributed to updated economic growth data from the International Monetary Fund.

The index evaluates national pension systems based on three main criteria: sustainability, adequacy, and integrity. Iceland received an A grade in all three categories, just as in previous years.

Further information on the website of Mercer