A quarter (25 per cent) of Danish 65-69 year olds were in employment in April this year, a 3 percentage point increase from April 2021 and a 10 percentage point increase from April 2012, analysis from Sampension has revealed.

The new figures, which came from the Danish Agency for Labour Market and Recruitment, also showed that many Danes choose to continue working after the state pension age, as 22 per cent of 67 year olds and 17 per cent of 68 year olds were in work in April 2022.

Sampension advised that, for people working past retirement age, it is particularly important to be aware of the financial gains that can be obtained from postponing retirement.

Sampension market and customer advisory manager, Anne-Louise Lindkvist, commented: "When you stay longer in the labour market, it boosts your pension savings, as it means more years of payments and returns and fewer years of pay-outs.

“At the same time, for the many and more and more Danes who continue to work after the state pension age, there are also other financial benefits from staying in work that are worth paying attention to."

Lindkvist also pointed out that you can get a tax-free senior premium for both the first and second year you continue to work after the state pension age.

"The tax-free senior premiums are an additional cash bonus that increases the financial gain from postponing retirement,” Lindkvist continued, “but you have to be aware of the hour requirement, because if you don't meet it, you don't get a senior prize.

“Therefore, those Danes who stay in jobs after the state pension age, or who have plans in this direction, have good reason to focus on the opportunities and requirements for senior premiums."

In September 2020, the first Danes were paid senior premiums for the first year they continued to work after the state pension age and, since then, about 10,100 of these first-year prizes have been paid, according to new figures from Udbetaling Danmark.

Lindkvist added: “But the senior premium scheme is not the only financial gain from continuing to work beyond state pension age that you need to be aware of.

“As a result of a political agreement earlier this year, a bill is expected to be introduced later this year, which means that you no longer have to be offset against the basic amount of the old-age pension and pension allowance if you as a pensioner also have a working income.

“If it is adopted, it will be more financially attractive in the future to continue working beyond the state pension age.

"In other words, there is good reason to increase the focus on the economic benefits of staying more years in jobs.

“And in general, it may never have been more important than now to plan your retirement from the labour market and retirement well in advance. Because there are still more and more conditions to be aware of."

In this connection, she adds that, for example, new rules were recently adopted in the Danish parliament, which means that from 1 January 2023, old age-pensioners, early retirees and senior pensioners will no longer be deducted from the pension because their spouse or partner is in the labour market.

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