The average retirement age for Danish employees reached a new milestone in the fourth quarter of 2024, hitting 67 years for the first time, according to new estimates from Insurance and Pension Denmark (I&P Denmark).

On average, workers are now 67.1 years old when they exit the labour market, a rise of nearly 10 months since the end of 2023 and the highest level recorded in 15 years.

I&P Denmark attributed the increase to a growing willingness among older workers to remain in employment beyond the official retirement age.

"The retirement age has been steadily increasing over the past decade," explained I&P Denmark director of pensions, Jan V. Hansen.

"This is driven by political reforms that have raised both the early retirement and state pension ages, as well as a strong labour market where more seniors are choosing to stay in work - often for years beyond the state pension age."

Hansen pointed to several contributing factors, including better health among older workers, favourable economic conditions, and improved financial incentives to keep working.

"But it's also likely that many older people prefer a gradual transition out of the labour market," he added.

"Workplaces have become better at offering the kind of flexible arrangements that senior employees value."

As a result, Hansen noted, fewer people are currently retiring, and those who do are doing so at a later age than in previous years.

The record high retirement age follows news that the Danish Parliament (Folketing) adopted a bill to increase the state pension age to 70 from 2040.

The bill to raise the retirement age is a consequence of the 2006 Welfare Agreement, in which a broad majority in the Folketing agreed that the state pension age ensured a connection between life expectancy and retirement age.

Amid these demographic shifts, Danish employers are also stepping up. Six Danish companies announced a collaboration aimed at making working life more attractive for seniors, outlining three promises in a pledge to them last month.

The initiative aims to develop strategies that realise the potential of senior employees and enable them to work beyond retirement age.

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