More Danes than ever are working beyond the state pension age, yet a clear majority oppose any further increase in that age beyond 70 after 2040, a population survey has shown, revealing a paradox in attitudes towards retirement.

According to figures from Jobindsats, more than 90,000 Danes have chosen to remain in the labour market after reaching the state pension age, a number that continues to grow even as the retirement age rises.

Indeed, the findings followed news that the average retirement age for Danish employees hit a new milestone in the fourth quarter of 2024, surpassing 67 years for the first time.

The shift has been encouraged by a new bill passed by the Danish parliament earlier this month, which aims to make it more financially attractive for Danes who have passed the state pension age to work in the future by increasing the tax-free senior premium.

However, a survey conducted by Epinion for Insurance and Pension Denmark (I&P) found that two-thirds (68 per cent) of respondents believed the state pension age should be capped at 70 after 2040.

Notably, just 7 per cent said they wanted to keep the current rules, which see the pension age increase by one year every five years, while 15 per cent said they would prefer smaller incremental rises.

I&P CEO, Kent Damsgaard, said the findings highlighted a “pension paradox” and underlined the need for greater flexibility in the Danish pension system.

“It is an interesting pension paradox that more and more Danes choose to stay in the labour market until they are well past retirement age. But at the same time, the majority of Danes have difficulty dealing with a continuously increasing retirement age,” he said.

He stressed that pension debates focused solely on a specific age risked alienating people who may have the capacity and willingness to continue working later in life.

“When the pension debate is reduced to one specific age, many of us become nervous about whether we can make it all the way to the finish line, even though many have both the desire and ability to continue when we get there,” Damsgaard added.

“That is why flexibility in pensions is so important - it ensures a completely different level of support and confidence in the overall pension system.”

Damsgaard warned, however, that Denmark’s long-term economic sustainability relies on the gradual rise in the state pension age as life expectancy continues to increase.

“The Danish economy is clearly dependent on the retirement age rising.

"When we can also see that a large majority are nevertheless sceptical of an increasing state pension age, we as a society have an urgent task of ensuring how we will secure support for one of the world’s best pension models in 5, 10 and 20 years.

"And there is no doubt that flexibility is an important part of the answer,” he concluded.

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