There are “very few” Danish people choosing to retire early using their personal savings, despite concerns that self-retirement is an issue in Denmark, according to Forsikring & Pension (F&P).

Figures from F&P have shown that around 8,000 Danes retired as self-pensioners before retirement age in 2021.

The association noted that while the vast majority of Danes save enough to live well when they reach retirement age, the wealth of ordinary workers was not enough to retire early on their own savings.

“We have one of the world's best pension systems today, and in the future it will only get stronger,” commented F&P CEO, Kent Damsgaard.

“But there is nothing to suggest that the Danes are on their way to saving too much for retirement.”

Damsgaard made the comments in response to an article by the former managing director of Danica Pension, Henrik Ramlau-Hensen, who warned that self-retirement on the basis of excessive pension assets was a problem.

However, Damsgaard disagreed with this hypothesis, arguing that there was not an issue with early retirement due to high personal pension assets.

He noted that the data showed Danes were working longer in line with higher post-retirement and state pension ages.

Furthermore, Damsgaard argued that the highly educated and those with the highest pension assets were retiring from the labour market latest, many only after reaching state pension age.

“The fact is that Danes work longer – and many even after the state pension age,” he continued.

“There will always be people who retire early from the labour market - but you generally find them among the small few with very large personal assets and free savings. Not among ordinary people with pension savings.”

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