More than half (57 per cent) of Danes said the increasing financial benefits of staying in the labour market longer could make them consider delaying retirement, according to research from Sampension.

An Epinion survey, on behalf of Sampension, found that over two-thirds (67 per cent) of those aged 18-34 said the increasing financial benefits of working longer could make them consider waiting to retire when they reach retirement age.

Meanwhile, 54 per cent of 35- to 55-year-olds and 52 per cent of 56- to 65-year-olds said the same.

In addition to this, figures from the Danish Agency for Labour Market and Recruitment revealed in August this year that 77,738 Danes were both in employment and received state pension at the same time.

This was an increase of 18.9 per cent compared to August 2023 and 31.5 per cent compared to August 2022.

"In recent years, we have seen a significant increase in the number of older Danes continuing to work,” Sampension customer advisory manager, Anne-Louise Lindkvist, said.

“This is partly due to the fact that the early retirement and state pension age has increased.

“At the same time, it has become increasingly financially attractive to postpone retirement, which has also contributed to Danes staying longer in the labour market.”

Earlier this year, the Danish Parliament adopted new rules to introduce an additional employment deduction from 2026-2030 for employed seniors who have two years or less until retirement age.

It has also been politically agreed that the tax-free benefit given to people who work in the first and second year after reaching state pension age will be increased in 2026 and again in 2029, but this has not yet been passed into law.

Lindkvist added: “We have witnessed a definite boom in the number of Danes working in retirement after new rules were introduced last year that cancelled the deduction in the state pension for working pensioners.

"And the trend is likely to continue in the future, as the benefits of postponing retirement become greater and greater.

“In the coming years, several initiatives are on the way to make it even more advantageous to stay longer in the labour market, and we can see that these kinds of financial carrots appeal to many Danes.

“Therefore, all else being equal, we can expect the group of older Danes who work to continue to grow in the future - if, that is, health permits and there are opportunities to do so.

"In purely financial terms, it makes a significant difference for the individual to postpone retirement in whole or in part, and it also benefits workplaces that more and more seniors want to contribute and extend their working lives.”

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