Icelanders are richer than Norwegians when Norway’s Oil fund and Iceland’s pension funds are compared reports the Icelandic National Broadcasting Service, RÚV.
According to the analyst department of Íslandsbanki, if the value of Norway’s oil assets would be divided between the nation, each Norwegian would receive ISK 2.6 million. Icelanders on the other hand would receive ISK 3.8 million if the net assets of the Icelandic pension funds are divided between the nation – almost twice the amount that Norway’s oil fund would pay each Norwegian.
Norwegians plan to use the oil fund to pay out future pensions. Norwegian pensions are funded on a “pay as you go” basis; in Iceland, pensions are funded by a compulsory contribution of 10% of gross salaries.
