Furthermore, the funds have recently received the good news that Iceland, the Netherlands, and Denmark are the three top-ranked overall retirement income systems in the world, according to the Mercer|CFA Institute Global Pension Index for 2021. This morning, Iceland’s second-largest pension fund, the Pension Fund of Commerce (LIVE), announced that accrued rights in its coinsurance division would be increased by 10% because of the fund’s strong actuarial position. Iceland’s pension system has invested fund members’ assets very successfully in recent years, and it is interesting to examine developments in the past few quarters.
Pension fund assets more than twice GDP
According to newly published figures from the Central Bank (CBI), Icelandic pension funds’ total assets amounted to ISK 6,445bn as of end-September. This equals just over two times Iceland’s year-2021 GDP, according to our forecast from this past September. Since the turn of the year, assets have increased by ISK 713bn, owing mostly to domestic and foreign shareholdings.