Danish workers have an expected average pension coverage ratio of approximately 80 per cent, according to Forsikring & Pension (F&P).

The association found that almost all professional groups will receive around 80 per cent of their income as a pension in retirement.

This includes unskilled workers as well as skilled workers and academics, F&P noted.

F&P described the Danish pension model as one of the best in the world, pointing to research that found, in 2022, around 7 per cent of Danes would be considered poor, while the corresponding figure for pensioners was just 1.5 per cent.

Furthermore, the coverage ratio is expected to improve, with F&P analysis predicting that the coverage ratio would increase to over 90 per cent by 2050.

“Today there are nine out of 10 wage earners who have an occupational pension,” commented F&P managing director, Kent Damsgaard.

“It forms a fantastic financial safety net in old age, which at the same time means that with the national pension we can also afford to stretch out an extra safety net for the last group who have no savings themselves. It creates security – and actually also greater equality.

“The most important success criterion for a good pension model is that you, as a pensioner, do not experience a huge drop in income when you leave the labour market.

“And here we can fortunately see that both unskilled, skilled and academics can look forward to a pension of approximately 80 per cent of their income today.

“Our pension model has been built up over more than three decades, and it will continue to mature in the future.

“In the future, more unskilled and skilled workers can look forward to a coverage ratio of over 90 per cent, so they will only feel a very small drop in wages when they retire. It shows how strong a model we have built up.”

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