The Danish Prime Minister has confirmed that the Folketing will vote to raise the retirement age to 70 from 2040 as part of the legislative programme next year.

Speaking at the opening of the Folketing, Prime Minister, Mette Frederiksen, noted that whilst issues around pensions and retirement are something that is often a point of disagreement in the Folketing, it is “something that really fascinates many Danes”.

“With the Welfare Agreement in 2006, a broad majority agreed that it is fundamentally a sound principle that we work longer in line with the fact that we also live longer, and that changes to the retirement age must be notified well in advance, so that Danes know what they can relate to,” she stated.

“Therefore, next year here in the Folketing, we must vote to raise the retirement age to 70 from 2040 - that is, in 15 years' time.

“The Welfare Agreement has been – and is – absolutely crucial for us in Denmark to have healthy public finances. Of course, we must also have that in the future.”

However, she pointed out that the welfare agreement is almost 20 years old, arguing that, when the retirement age rises to 70, it would be “natural” to look at whether there should be another mechanism.

“A change to the welfare agreement has major consequences for the individual and for the economy,” she acknowledged, however.

“Therefore, it must be done with respect for the individual, and it must be properly prepared. The government is now embarking on that process.”

Denmark’s Forsikring & Pension (F&P) welcomed the Prime Minister’s speech, particularly the focus on taking care of the most vulnerable in society.

“That focus is important for both dignity and security in our society. As a society, we must have the resources to help those who need it most,” F&P CEO, Kent Damsgaard, said.

Damsgaard also welcomed the plans to look at the Welfare Agreement and the retirement age in 2040 as part of the legislative program next spring.

“It makes sense that the government wants to create peace and security about both our economy and the retirement age by prioritizing the planned adjustment of the retirement age to 70,” he stated.

“In continuation of that, politicians, social partners and other actors can take up the broader and more long-term debate about the further development of the retirement age and our pension model.”

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