Insurance and Pension Denmark has said there are “good prospects” for the Liberal Party’s recently proposed working life commission.

In a statement, the Danish pension association acknowledged the “lively debate” on Danes’ working life and retirement age currently taking place in Danish politics. This latest proposal is in response to the Social Democrats’ proposal to introduce a more lenient state pension age indexation after the state pension age reaches 70.

When announcing the policy, Liberal Party politician and Minister for Economic Affairs, Stephanie Lose, said: “‘We're proposing to set up a working life commission to look at how we can give Danes a better and more flexible working life – from the first job, to the job where you're on maternity leave, and all the way to the state pension. Once again, we can't just talk about the length of working life. The important thing is that Danes' working lives should be good and flexible all the way.

“These are potentially very big decisions that affect Denmark and the Danish economy far further ahead than most of us realise in our daily lives. This is not something we should take on lightly. It calls for holistic thinking and a thorough basis for decision-making that cuts across many considerations. A working life commission can ensure this.”

I&P Denmark said the pension industry takes a positive view of proposals from the Liberal Party for a long-term view of the Danes' working life and retirement life. However, the association added that it is “crucial” that politicians ensure coherent and well-thought-out solutions.

Commenting, I&P Denmark CEO, Kent Damgaard, said: “When it comes to something as important as the Danes' security in old age, there is a real need for some long-term, well-thought-out and robust solutions with broad political support. Therefore, it makes a lot of sense to set up a working life commission that can take a comprehensive look at the need for flexibility, a good and long working life and a solid pension in the future.

However, he points out that many wishes for the pension system pull in different directions.

“We have one of the world's best pension models in Denmark. But if you follow the debate right now, Danes' savings should be able to finance a more flexible family and working life, young people's purchase of owner-occupied homes and more years of retirement. It goes without saying that this cannot be done unless there is a massive increase in savings,” Damsgaard added.

“Already today, there are about 500,000 Danes in jobs who save too little for retirement. It should be a clear common goal for our politicians that more Danes in the future can retire with sufficient savings and financial security – this requires better incentives, for example through an increased pension deduction.”

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