There was a blizzard of dire warnings this week about a global pensions crisis, following the publication of a comprehensive report from the Organisation for Economic Co-operation and Development. But which country has got it most right on pensions and why? The answer may surprise you.

Despite the meltdown of its banks and domestic economy during the financial crisis and a 95% plunge in its stock market last year, the tiny Nordic nation of Iceland scores at the top, or near the top, of just about every pensions indicator the OECD has. Governments looking for answers to the savings crisis could learn many lessons from the way its system is put together.