Fewer young Danes took early retirement in 2024 for the first time in a decade

The number of Danes who took disability pensions under the age of 40 decreased for the first time in a decade in 2024, research from the Danish Agency for Labour Market and Recruitment (STAR) has found.

The research found that in 2024, there were 5,892 new disability pensioners under the age of 40, a decrease of 380 individuals compared to 2023, reflecting a 6 per cent drop.

From 2013 to 2014, the influx of new disability pensioners under the age of 40 decreased, but in the period 2015 to 2023, the influx increased every year.

"In 2013, an early retirement reform came into force, which meant, among other things, that people under the age of 40 should not receive disability pension,” Sampension head of health, Nicoline Rosenlund, said.

“Nevertheless, since then, we have witnessed a very sad development, with the number of young people taking early retirement steadily increasing.

“But in 2024, the influx plunged for the first time in 10 years. And it is obviously positive if the decline reflects that the curve is slowly starting to break and that there are fewer young people who reach the point where there is no other way out than an early retirement.”

Despite the decrease last year, the inflow of new disability pensioners under the age of 40 in 2024 was still at the second highest level in the lifetime of the statistics, only surpassed in 2023.

The research also revealed a “record” number of young people were on early retirement last year. Therefore, 39,353 people under 40 were on early retirement in December 2024, the highest level ever and an increase of 7 per cent compared to the previous year.

Rosenlund said that despite last year's decrease, the influx of people to early retirement is still very high, and “something must be done about this”.

“Because when you are young, you basically have to be healthy and active and have a good and long life ahead of you - including in the labour market” she continued.

“At the same time, we know that once you have taken early retirement, the chances of returning to the labour market are definitely not good.”

“A special extract from STAR made for Sampension shows that 77 per cent of all disability pension awards to young people under the age of 40 now have mental disorders as their main diagnosis. 10 years ago, the proportion was 61 per cent.”

She said that poor well-being, poor mental health, and mental disorders, which over several years have become increasingly common among young Danes, undoubtedly have had an impact on the increase in early retirement pensions for young people in recent years.

She emphasised that it was “especially important” to solve the challenge of young people's mental well-being to ensure that fewer people take early retirement early in the future and said that the industry all have a responsibility to contribute.



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