Growing number of Danes set to work past retirement age

Two thirds (64 per cent) of Danes would like to work after retirement age, according to research from Sampension.

The Epinion survey found that 20 per cent of respondents said that they would not be willing to work past state pension age, while the rest said they didn’t know.

Younger savers were more likely to be willing to work past state pension age, as more than two thirds (69 per cent) of 18-34-year-olds said they could see themselves working after retirement, compared to 63 per cent of the 35-55-year-olds and 59 per cent of 56-65-year-olds.

Gender differences were also highlighted, as 56 per cent of women were willing to work past retirement age, compared to 71 per cent of men.

However, the majority (88 per cent) said that it is important that it pays off financially if they choose to work after the state pension age.

Despite this, the survey found that very few Danes are aware that it is now better to work in retirement, as just under half (44 per cent) thought it had been made more economically advantageous to work after retirement age.

In addition to this, just under a third (32 per cent) thought that it can now pay off to the same degree or less, while 24 per cent said they didn't know if it was now more economically advantageous.

Sampension head of customer advice, Anne-Louise Lindkvist, highlighted this as a "remarkable development", noting that more and more Danes want an active retired lifestyle, which also increasingly includes some form of work.

She stated: "The Danes are generally staying longer in the labour market these years, where we also see that more and more people are continuing to work after the state pension age.

“And that trend looks set to continue going forward. Because there is a significant proportion of Danes - across age and gender - who can well imagine a retirement life where work a few hours or more a week is included.

"In recent years, it has continuously been made more financially attractive for Danes to postpone their pension and also to work in retirement. And we can see that the economic carrots appeal to many Danes.

"It is important to be aware of the financial advantages of postponing the pension and of working at retirement age when planning your withdrawal from the labour market, as for many it can have an impact on these plans.

"But here there seems to be a need for us to increase awareness among the general population and not least among the Danes who are approaching retirement age.”

Lindkvist also said that there is a chance that it will become even more economically attractive to work after the state pension age in the coming years, as the latest political agreement on the tax reform, which was concluded at the end of last year, means that the tax-free senior premium must be increased in 2026 and again in 2029. However, this is not adopted yet.



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