Denmark Sets Record with Retirement Age Increase to 70 by 2040

The decision aligns retirement age with life expectancy but faces opposition from labor groups and citizens concerned about its impact on blue-collar workers.

Denmark has made headlines by adopting a law that will raise its retirement age to 70 by the year 2040, making it the highest in Europe. This significant change, which applies to individuals born after December 31, 1970, was passed by parliament with a vote of 81 in favor and 21 against. Currently set at 67, the retirement age will increase to 68 in 2030 and 69 by 2035, following a model that links it to life expectancy, which Denmark has been adjusting since 2006.

The ruling Social Democrats, led by Prime Minister Mette Frederiksen, have indicated that the automatic increases could be a subject for future negotiations, casting doubt on the sustainability of the current approach. “We no longer believe that the retirement age should be increased automatically,” Frederiksen remarked, emphasizing the need for a more nuanced discussion on the issue.

Protests have erupted in Copenhagen, backed by trade unions that challenge the fairness of the new law. Tommas Jensen, a roofer and father, expressed his frustration over the changes, voicing concern for blue-collar workers who are often in physically demanding jobs. “We can't keep going,” Jensen lamented, advocating for the right to enjoy life after a lifetime of work.

As Denmark navigates this complex issue, it stands out among European nations, many of which have also raised their retirement ages in response to increasing life expectancy and fiscal pressures. For instance, Sweden allows pensions to start at age 63, while Italy's standard is 67 and could further increase by 2026. In contrast, the UK enforces an escalating pension age for those born after April 1960, while France recently heightened its retirement age from 62 to 64, triggering widespread protests.

In a continent grappling with aging populations and economic challenges, Denmark's bold move marks a pivotal moment in discussions around retirement, equity, and workforce sustainability, raising questions about the balance between economic necessity and workers' rights.