The pension system in Iceland is based on three foundations: the obligation of all working people to belong to a pension, savings in common funds and the insurance of a lifelong retirement, which also insures income in case of accident or illness or income to a family in case of death. There are specific laws which require pensions to be insured, minimum rights of pensioners and surveillance with pensions operations.
The main challenge faced by pensions is that people are living longer at the same time as birth rates are declining. The discussion on the aging of our society is becoming a natural part of the discussion of general quality of life. It is important that the pensions react to this development, create trust between them and the public and a good and stable reputation with well planned investments, good corporate governance and social responsibility.
PricewaterhouseCoopers stresses the importance of long-term growth, competitiveness, sustainability and stability. To live up to public expectations the pensions need to use newest technology for remittance, adequate disclosure and transparency, and participate in research and innovation. The most important thing for pensions is to have public trust and live up to their commitments. Good corporate governance is one aspect of gaining and maintaining such trust.
The success of individual pensions will depend on their capacity to deal with a changed environment and developments in the next years. PricewaterhouseCoopers provides various consultancy services which can improve the success of the operation.
Example of our services