Danes hesitant to hand in the bag by 70
Denmark Sets Retirement Age to 70 by 2040
In May, Denmark’s parliament approved a law that will raise the state’s official retirement age to 70 by 2040, up from the current 67.
First Danes to Reach 70
Bank employee Kirsten Evans is among the first cohort who will have to wait until 70 to receive a full pension. Evans, 53, plans to retire around 65 or 66, even if that means a reduced pension.
Life‑Expectancy Link
Danish law links the retirement age to life expectancy, a policy introduced in 2006 and revised every five years. By 2030 the age will be 68; by 2035 it will rise to 69. Those born after December 31, 1970, will have to wait until age 70.
Actual Retirement Age is Lower
- In 2022, the official age was 67, but the average retirement age was about 64.
- Approximately 20 % of Danes retire because they cannot find work or suffer health problems.
- These 20 % will feel a stronger impact if the retirement age rises again.
Conflicting Views
Chief economist Damoun Ashournia of the Danish Trade Union Confederation warned that only a few actually retire at the legal age, and that the gap between well‑funded retirees and others will widen.
Union member Camilla Rasmussen, 37, believes she will not be able to work until 70 because she cannot physically walk 10,000 steps every day.
Pension System Overview
Denmark’s pension scheme involves:
- A universal public pension of 7,198 kroner ($1,130) per month.
- Two employer‑funded pensions – one mandatory, one optional.
- Additional private savings for some.
Future Outlook
National economist Erik Simonsen says the only way forward is to keep adjusting the retirement age. He argues that as the population ages, people must work a bit longer to maintain the welfare state.
Danish Prime Minister Mette Frederiksen has indicated that a review may be needed once the age hits 70:
“Automatic increases to the retirement age are no longer acceptable.”
In contrast, the Trade Union Confederation suggests a slower pace of increase, proposing to raise it by only half a year for every year life expectancy rises.
