A "historically high" number of Danish individuals, totalling 80,000, have opted to continue working past the state pension age (SPA), according to a report by Insurance and Pension Denmark (I&P Denmark).

“The figures show very clearly that many Danes are staying longer and longer in work. So, the good news is that many Danes have both the health and the desire to work – even after the SPA," I&P Denmark pension director, Jan V. Hansen, said.

This trend is particularly significant in the context of the 2006 Danish Welfare Agreement, a long-standing policy framework that links retirement age adjustments to life expectancy.

Hansen said the Welfare Agreement has been “crucial” for a “strong and robust” economy and balance of public finances in the long term and is a situation that many European countries envy Denmark for.

The Danish parliament is expected to vote on the latest adjustment under this system: A rise in the SPA to 70 years by 2040, based on life expectancy projections today (22 April).

While Hansen said the figure may sound extreme to some, he stressed that the adjustment is grounded in reality, with more Danes working longer across all education levels.

In particular, since 2010, the retirement age has increased by 3.8 years for those who are unskilled or skilled, and by about 3.3 years for those with a short or medium-length higher education.

Meanwhile, for people with a higher education, the retirement age has increased by 2.8 years, so that today it is 67.9 years and on average higher than the SPA.

Hansen credited this development to several factors, including good economic conditions, improved employer flexibility, a greater desire to continue working, and improved financial incentives.

However, he also cautioned that a rise in SPA alone is not enough.

“It does not benefit either the Danish economy or the individual senior if the SPA rises without employment for the elderly at the same time,” he said.

“So there is reason for great recognition for both seniors and employers who have made the progress possible.”

Prime Minister, Mette Frederiksen, previously stated that as the welfare agreement is almost 20 years old, when the retirement age rises to 70, it would be “natural” to look at whether there should be another mechanism in place.

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