Iceland’s Gigantic Pension Fund Is Creating a Headache at Home
- 50% overseas limit governs Iceland’s retirement savings
- Government is going to consider loosening that regime
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Iceland is confronting the trouble that comes with having a pension system so successful in amassing savings for future retirees that it was recently rated the best in the world.
With assets now at about double the size of the north Atlantic island’s economy, the government is considering allowing investment managers to diversify by buying up more securities abroad, prompting the central bank to urge caution. The rules currently limit the share of overseas holdings in pension assets at 50%.