Study Places Iceland Among Top Countries for Retirement Security

2026-01-25 - 21:07

Iceland continues to rank among the world’s strongest countries for retirement security, according to new international research comparing state pensions and living costs. The study, published by UK HR and payroll specialists Moorepay, assessed pension provision in 85 countries by measuring how far state payments go once basic expenses are accounted for. What's the Story? Research compared state pensions across 85 countries Iceland ranked 4th globally for pension surplus in the study Average annual surplus in Iceland estimated at around 1,873,770 ISK after basic living costs Iceland’s state pension estimated to cover 178.86% of average living costs Reykjavík's old homes. Photo: Golli. Pension costs compared Researchers found Iceland ranks fourth globally for pension surplus. On average, retirees in Iceland are left with around 1,873,770 ISK per year after essential living costs, the report said. Moorepay also calculated that Iceland’s state pension covers 178.86% of average living costs, meaning the payment is estimated to cover close to double the amount needed for essentials. The analysis forms part of Moorepay’s wider review of global state pension systems, which uses local pension data alongside cost-of-living estimates. The report notes that its rankings are based on estimated pension income after essential living costs, and are intended as a broad comparison between countries rather than a detailed assessment of individuals’ retirement finances. Moorepay said the findings combine publicly available state pension figures with cost-of-living estimates to calculate overall coverage and average surplus.