Denmark Simply Raised Retirement Age to 70 — Different International locations Might Comply with

Denmark has formally raised its retirement age to 70 — and different international locations could make comparable strikes.

The Danish Parliament handed laws on Thursday that may regularly elevate the retirement age to 70 by 2040.

The change applies to anybody born after December 31, 1970.

The invoice, which handed with 81 votes in favor and 21 in opposition to, marks one of the vital vital modifications to the state pension age in Europe. It additionally indicators a broader shift in how developed economies are making ready for growing older populations and mounting fiscal pressures.

The transfer stems from a 2006 welfare settlement that ties the pension age eligibility to life expectancy. With individuals dwelling longer, the federal government argues that elevating the retirement age was wanted to maintain the pension system financially sustainable.

“In 2040, we’ll elevate the retirement age from 69 to 70 years, amongst different issues, to afford correct welfare for future generations,” Ane Halsboe-Jørgensen, Denmark’s employment minister, stated in a press release following the vote.

She stated it could be the final time her celebration voted for a rise underneath the present system, citing the necessity for a fairer mannequin that mirrored variations in profession size and job sort.

The choice has sparked anger from unions and employees in bodily demanding sectors reminiscent of building and agriculture.

Denmark’s largest commerce union, 3F, has argued that the coverage will disproportionately burden lower-income employees. It stated surveys had discovered three-quarters of their members doubted they might maintain working into their 70s.

Pension modifications have grow to be a flash level throughout Europe. Simply two years in the past, France was rocked by months of mass protests and strikes after President Emmanuel Macron’s authorities raised the retirement age from 62 to 64.

Nonetheless, as demographic strain mounts globally, Denmark’s transfer could also be a bellwether.

International locations together with Germany, the Netherlands, and the UK have already scheduled retirement age will increase to 67 by 2031, 2028, and 2028, respectively.

With life expectancy persevering with to rise, start charges falling, and the necessity for a sustainable ratio of employees to retirees, economists and researchers say retirement ages will in all probability must be pushed again additional.

A 2024 report from the UK’s Worldwide Longevity Centre projected that Britain must elevate the retirement age to 71 by 2050 to keep up the ratio of employees to retirees.

Equally, within the US, the retirement age for full Social Safety advantages has already been raised from 65 to 67.

Whereas Republicans have proposed an extra improve, President Donald Trump stated on the marketing campaign path in June 2024 that he would “not elevate the retirement age by sooner or later.”