The average retirement age of Danes reached a record high of 67-years-old during the first half of 2022, figures from the Danish trade association Forsikring & Pension (F&P) has revealed.

F&P revealed that the average age for retirement from the labour market for state pension or early retirement was 67 years in the first half of 2022, an increase of 8 months on the first half of 2021.

The association explained that the lifetime indexation of the state pension age means that the retirement age increases as savers live longer, which ensures that they work more years and are in retirement for a smaller part of their lives.

K&P CEO, Kent Damsgaard, commented: “It is good news for the Danish economy that the retirement age from the labour market is rising.

“There is still a high demand for labour in almost all industries. In that situation, it's good that seniors work longer. And if we raise our eyes and look at the long run, it is crucial for the sustainability of our economy that we have decided to continuously raise the retirement age, and that Danes actually work it longer every time the retirement age is raised.

“Therefore, it is also positive that the new government will make it more attractive for more seniors to stay in the labour market.”

Although the increase of the state pension age to 67 raised the average age at which Danes retire, F&P noted that the introduction of early retirement from 1 January, which gives the right to retire up to three years before the state pension age, pulls the average the other way.

However, the association suggested that the introduction of early retirement may not have as big of an effect on the average age as first thought, as fewer people than expected were found to be exercising their right to early retirement.

The figures were detailed by Damsgaard who stated: “It was expected that 24,000 people would take advantage of the right to early retirement this year alone, but we estimate that only about 11,000 will exercise their right - and about 4,500 will be some who come from employment.

“Danes who retire early will reduce the retirement age, but these are relatively few people, so it means less for the overall retirement age."

F&P detailed that the new figures are the first-time early retirement is included in the statistics, and although it includes people who retire from the labour market before the state pension age, it does not change the facts that the total retirement age is increasing.

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