Denmark's New Retirement Law Sets European Benchmark at 70

Denmark has raised its retirement age to 70 by 2040, making it the highest in Europe, with widespread opposition from worker groups and social advocates.

Denmark has recently positioned itself as the European leader in retirement policy, setting its official retirement age at 70 by 2040 after the parliament's decisive vote of 81 in favor and 21 against. This new law, applicable to individuals born after December 31, 1970, is a continuation of the country's long-standing practice initiated in 2006 where the retirement age adjusts based on life expectancy. Currently standing at 67, it will increase to 68 in 2030 and 69 by 2035.

Despite this legislation's passage, there remains skepticism about the automatic increase in the retirement age. Social Democrat Prime Minister Mette Frederiksen previously affirmed the necessity of renegotiating this sliding scale, stating, "You can't just keep saying that people have to work a year longer."

Concerns voiced by industries, especially from blue-collar workers like roofer Tommas Jensen, spotlight the issue's urgency. Jensen remarked, "We're working and working, but we can't keep going." He emphasized that those engaged in physically demanding jobs would struggle more than their desk-bound counterparts, stating that a dignified life in retirement is increasingly unattainable.

Turmoil surrounding the proposed age increase sparked protests in Copenhagen, supported by trade unions and raising questions about the fairness of the new policy. Jesper Ettrup Rasmussen, chair of a Danish trade union confederation, voiced that "a higher retirement age means that [people will] lose the right to a dignified senior life," highlighting the contrasting economic health of Denmark against the backdrop of rising retirement ages across Europe.

Retirement policies throughout Europe vary considerably, with many countries adjusting age limits to align with longer life expectancy. For instance, pensions in Sweden can be claimed from age 63, while Italy’s stands at 67 with forthcoming adjustments. Meanwhile, the UK sees a gradual increase in retirement age for those born post-1960, and in France, a controversial rise to 64 has sparked significant unrest. Denmark's legislative change thus not only reshapes its own social framework but also resonates throughout the European landscape as many nations wrestle with similar demographic challenges.