Denmark has officially increased its retirement age to 70 by the year 2040, making it the highest in Europe. This decision links the pension age to life expectancy, leading to criticism from unions regarding its fairness. As aging populations put pressure on public finances, other countries may consider similar adjustments. The Danish Parliament approved the legislation on Thursday, which will gradually implement the new retirement age for individuals born after December 31, 1970.
The bill, which received 81 votes in favor and 21 against, represents one of the most significant adjustments to the state pension age in Europe. It also reflects a broader trend among developed economies as they adapt to aging populations and increasing fiscal challenges.
This change is rooted in a 2006 welfare agreement that links pension age eligibility to life expectancy. With people living longer, the government contends that raising the retirement age is essential for maintaining the financial sustainability of the pension system.
"In 2040, we will increase the retirement age from 69 to 70 years, among other measures, to ensure adequate welfare for future generations," stated Ane Halsboe-Jørgensen, Denmark's employment minister, after the vote.
She stated that this would be the final occasion her party would support an increase under the existing system, emphasizing the necessity for a more equitable model that accounts for variations in career length and job type. This decision has incited outrage among unions and workers in physically demanding industries like construction and agriculture. Denmark's largest trade union, 3F, contends that the policy will unfairly impact lower-income workers. Surveys conducted by the union revealed that three-quarters of their members are skeptical about their ability to continue working into their 70s.
Pension reforms have sparked significant unrest throughout Europe. Just two years ago, France experienced extensive protests and strikes after President Emmanuel Macron's administration raised the retirement age from 62 to 64. However, as global demographic pressures intensify, Denmark's recent decision could serve as a key indicator. Countries such as Germany, the Netherlands, and the UK have already planned to increase the retirement age to 67 by 2031, 2028, and 2028, respectively.
As life expectancy increases and birth rates decline, the need for a sustainable balance between workers and retirees is becoming more pressing. Economists and researchers suggest that retirement ages may need to be extended further. A report from the UK's International Longevity Centre in 2024 projected that Britain would need to raise the retirement age to 71 by 2050 to sustain this balance. Likewise, in the United States, the retirement age for full Social Security benefits has already been increased from 65 to 67.
Although Republicans have suggested an additional increase, President Donald Trump stated during his campaign in June that he would "not raise the retirement age by even one day."
