Denmark Sets New Retirement Age at 70 Until 2040

Denmark has officially implemented a new law that will raise the retirement age to 70 for individuals born on or after January 1, 1971. This legislative change, aimed at adapting to increasing life expectancy, was passed by the Danish Parliament and is set to take effect by the year 2040.

The current retirement age in Denmark stands at 67 years, but the new law will gradually adjust this age in response to demographic shifts and the growing demand for sustainable pension funding. By 2030, the retirement age will increase to 68, and it will reach 69 by 2035, with the first cohort of 70-year-old retirees anticipated in 2040.

This adjustment positions Denmark at the forefront of retirement age policies within the European Union. The country has consistently aligned its retirement age with life expectancy, reviewing the figures every five years. Recent estimates suggest that individuals born in the 1990s may not be eligible for retirement until they reach ages between 73 and 74.

In contrast, Germany is currently in an ongoing debate regarding its retirement policies, with discussions centered around increasing the retirement age to 67 by 2031. Currently, Germany's legal retirement age is slightly lower than that of Denmark, at 66 years and two months. Other countries in Europe have also set varying retirement ages; for instance, the Netherlands has a retirement age of 67, while Austria's is 65 for men and 61 for women. France and Italy set the age at 64, and Greece and Luxembourg allow retirement at 62.

Danish Prime Minister Mette Frederiksen has expressed openness to reevaluating the retirement age once it reaches 70 but indicated that further automatic increases may not be warranted. This perspective resonates with many citizens who view the new retirement age as excessive. Local leaders, including several mayors from the Social Democratic Party, are advocating for a halt to further increases, arguing that the current age limit is adequate.

In Germany, economist Veronika Grimm has proposed a more moderate approach to adjusting the retirement age, suggesting that it could be incrementally raised every ten years to reflect changes in life expectancy. This strategy aims to maintain a balanced ratio of retirees to workers, thus ensuring the viability of the pension system.

The recent legislative change in Denmark reflects broader trends across Europe as nations grapple with aging populations and the sustainability of their pension systems. The move to raise the retirement age is emblematic of the ongoing challenges faced by governments in balancing the needs of an older workforce while ensuring economic stability.