The Danish Parliament (Folketinget) has approved a landmark law raising the retirement age to 70, making it the highest in Europe. The reform, which will apply to all citizens born after December 31, 1970, is set to take effect in 2040. The current official retirement age in Denmark is 67, with scheduled increases to 68 by 2030 and 69 by 2035, continuing the trend established by the 2006 “Welfare Agreement” (“Velfærdsaftalen”), which links retirement age to life expectancy.
Trade unions and local politicians voice strong opposition
The decision has met fierce opposition from trade unions, including Denmark’s largest union 3F and the public sector union FOA, which represent workers in physically demanding roles such as construction, cleaning, and care services. Henning Overgaard, president of 3F, described the reform as “completely insane,” highlighting the lack of measures to ensure equitable retirement options for workers who enter the labor force early.
Several Social Democrat (Socialdemokratiet) mayors and MPs have also expressed doubts. Prime Minister Mette Frederiksen herself had previously signaled the need to reassess the 2006 law, stating it was becoming increasingly unfeasible to continue raising the retirement age.
Early retirement schemes weakened by the reform
The law will also impact early retirement schemes, particularly the widely debated “Arne pension” and senior pension. These systems currently allow early retirement at 64 and 61, respectively, under specific conditions. By 2040, these thresholds will rise to 67 and 64, effectively nullifying the notion of early retirement, critics argue.
“It is no longer early retirement if one can only access it at 67,” said Karsten Hønge of the Socialist People’s Party (Socialistisk Folkeparti, SF). The Red-Green Alliance (Enhedslisten) echoed the concern, with MP Victoria Velasquez calling the situation “completely undignified and detached from reality.”
Government defends long-term financial sustainability
The Government defends the move as fiscally necessary. According to estimates, the reform will generate an additional 15 billion DKK (approx. €2 billion) annually for the public budget from 2040 onwards. Employment Minister Ane Halsboe-Jørgensen maintained that the reform is consistent with existing agreements, stating that retirement schemes will continue to allow early exit up to three years before the statutory age.
Nevertheless, she acknowledged persistent inequality in retirement outcomes, especially for workers in physically demanding jobs, and signaled the government’s intention to reopen discussions to explore more nuanced, flexible solutions.
Denmark’s unique position in Europe
With this reform, Denmark surpasses all other European countries in statutory retirement age. Many neighboring regions, including Germany, Sweden, and Italy, maintain retirement ages around 66-67, but none have committed to reaching 70. This places Denmark at the center of a broader European debate about pension sustainability versus social equity in an aging population.
A debate far from over
As the demographic and economic pressures mount, the question of who pays for longer life expectancy remains at the heart of Denmark’s political discourse. With growing polarization between fiscal prudence and social justice, the political battle over senior life is likely just beginning.
The coming years will show whether Denmark can balance its long-term financial needs with the promise of dignified and equitable retirement for all citizens.
