With better healthcare and disease control, we now live much longer, but the downside is that it means more years of employment. Denmark is raising the retirement age to 70 by 2040, asking its citizens to make the most of their able-bodied years. The Scandinavian country is set to have the highest retirement age across Europe and while the shift is still a while away, citizens are concerned. Of course, they could choose to retire early on their own dime, but the maximum retirement benefits promised will only become available to them at 70.
The Danish retirement reforms for 2040 have alarmed many residents who think the move is an unreasonable one, however, the government remains adamant that citizens are working for longer regardless of the prescribed retirement age. The policy aims to capitalize on this apparent go-getter attitude of the Danes and delay pension for a few additional years.
Denmark’s retirement policy largely mirrors changes that are occurring within the UK and the US, where there has been a greater push to increase the retirement age and convince citizens to work a few more years before signing out.
Denmark’s retirement is going up, but the change isn’t occurring in isolation. (Image: Pexels)
Denmark’s Retirement Age is Going Up—Other Regions Will Likely Follow
Denmark is raising the pension age to 70, and here’s what we know so far. Recently, 81 parliamentary voices voted to increase the retirement age in Denmark, winning easily against the 21 votes that voted against the change.
According to Denmark’s new retirement policy, the current retirement age of 67 will go up to 68 by 2030, 69 by 2035, and eventually 70 by 2040. This gradual increase means that those retiring in the next few years won’t be majorly affected and can continue with the retirement plan they had in mind, but the goal is to eventually push the retirement age further.
The law will apply to those born after December 31, 1970. For those born on January 1, 1967, or later, the current retirement age is expected to go up to 69 as the new policy is gradually put into motion.
Why Has Denmark Raised the Retirement Age?
Under the country’s Pensions Act, Denmark revisits the retirement age every five years to see if adjustments need to be made to keep up with the increasing life expectancy of its citizens. Those who live longer, collect benefits for longer, adding a greater strain to the funds reserved for retirement benefits.
Many countries are considering increasing the retirement age to ensure that workers who can still work, can save and contribute taxes that are used by the government for longer periods, allowing the government to increase the reserve of funds. Employment Minister Ane Halsboe-Jørgensen said that by increasing the working age, Denmark could “afford proper welfare for future generations.”
There is also said to be sufficient evidence that even without the increase in retirement age, Danes are working even after crossing the age of retirement. Jan V. Hansen, Director of Pensions at the F&P Association said, “The good news is that many Danes not only have the health but also the desire to continue working—even after reaching the state pension age.”
How Have Danes Responded to Denmark’s Pension Reform in 2025?
Citizens are understandably frustrated about the change in retirement age. Of course, there is a significant section of the population that wants to continue working, either to stay active or because their pensions and savings don’t satisfactorily cover their expenses, but for the large majority, retiring early is a central goal.
Unfortunately, the changes to the retirement age do not distinguish between citizens who are working voluntarily and those who just want to sit back and enjoy their retirement, so we’re left with Denmark’s retirement age going up.
One frustrated blue-collar worker told us, “It’s unfair to change policies like this without fully considering what it will mean for us. We spent the majority of our lives on back-breaking work only to see the government tell us it isn’t enough. I’ve pushed forward for so long, thinking that it’ll end with retirement, but the option gets pushed back further. By the time I retire, I will be too old and too exhausted to enjoy it.”
This is a key concern leading to the frustration around Denmark’s changing retirement age. If life expectancy is on the rise, citizens want to spend it on pursuing passions and enjoying time away with their families, as opposed to sitting at their desks or toiling at worksites for additional years. Protests around Copenhagen have been reported, with workers standing firm against the Danish retirement reforms for 2040.
It is also important to consider that being able-bodied doesn’t prevent diseases and conditions that come with rising age. It is unfortunate that many may never be able to capitalize on their younger years to live out their lives in ways that please them.
Should More Countries Emulate Denmark’s Retirement Age Changes?
Amidst falling birth rates, increasing economic burdens, and the rising life expectancy of older workers, pushing the retirement age has been deemed necessary not just by Denmark, but other countries as well. The US has already made adjustments to the retirement age to 67 and so has France, moving it up to 64. Germany, the UK, and the Netherlands are also expected to make similar moves in the coming years.
Yes, Denmark’s retirement age of 70 by 2040 is the highest we have now, but it is the most long-term plan that has been revealed. Other countries could also hit the same mark by then, increasing more gradually rather than revealing the entire strategy outright. As unfavorable as the strategy is for workers, it is apparent that governments are convinced that this is the best way to capitalize on the increased life expectancy of their citizens.
With the retirement age guaranteed to change globally, employers and their HR teams will have a key role to play in understanding its implications and informing workers. The more informed that workers are, the better they will be able to plan ahead for their careers. The better retirement support a company offers, the more loyalty it can inspire among its employees.
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