Three-pillar system: residence-based means-tested state pension (first pillar), mandatory occupational DC pension funds (second pillar, 15.5% total contributions split 4% employee/11.5% employer), and voluntary supplementary savings. Targets 72% replacement rate for 40 years full-time work; ranked 2nd globally in Mercer 2023 with A score for robustness and sustainability.

Pensions replace up to 72% of pre-retirement income for median earners with full contributions; benefits start at age 67 (early at 65 reduced), indexed to CPI. High female labor participation ensures broad coverage; low-income supplements prevent poverty.

Universal public healthcare via Icelandic Health Insurance for legal residents, covering retirees with high-quality services. Minimal wait times, excellent facilities; private options available but rarely needed.