Denmark decides to retire at the age of 70 - what does that mean for us?

Denmark decides to retire at the age of 70 - what does that mean for us?

Dänemark - The Danish Parliament decided on May 30, 2025 to raise the regular retirement age for the state basic pension to 70 years. So far, the entry age is 67 years, but the new decision provides for a gradual increase: to 68 years in 2030, 69 years in 2035 and finally 70 years in 2040. These measures result from current demographic development, in which an aging population and a low birth rate are identified. According to the Danish Statistics Institute, the retirement age could even rise to 71 years by 2045 and to 72 years by 2050.

The change was supported by a large majority of the Danish parties, while the population is mostly skeptical: 67% reject further increases. Exceptions for certain groups were also determined: People with at least 42 years of professional experience can currently retire at the age of 64, but from 2040 only at the age of 67. Furthermore, the entry age can be reduced to 61 years if there is a medical certificate for reduced ability to work; From 2040 there is a minimum age of 64 years.

The Danish pension system in detail

The Danish pension system differs significantly from the German. It consists of three pillars: the "folk pension", the "capital board" and voluntary provision. The state basic pension, which is around 2081 euros per month, is financed from tax revenue. The basic pension does not apply to all Danes who have lived in Denmark for at least 40 years between the age of 15 and retirement. With less than 40 years of stay in Denmark, discounts must be accepted. However, this is a simple system that aims to offer sufficient basic care with little administrative effort.

The second pillar, the capital pension, is mandatory for employees with medium and higher incomes. Employees and employers each pay between 5% and 10% of the salary in pension fund. The majority of this money flows into investment funds and government papers. The voluntary provision also offers considerable tax advantages, especially for well -earned employees.

social aspects and economic developments

Danish pensioners enjoy an average of around 3500 euros, with the basic pension less than half of it. In addition, the pensioners receive around 73% of their former gross income, while in Germany it is only 44%. Interestingly, Danish pensioners can earn tax -free up to 1756 euros annually, provided that employment takes place among private individuals.

The increase in retirement age in Denmark is not distributed over a long period of twenty years, but is gradually taken place, which is considered part of the answer to the "hammock problem" in order to ensure the care of the elderly in the long term. Before the reforms, only 16% of the 65- to 69-year-olds were actively employed; This proportion could be increased to 25%. The Danish retirement provision is therefore financially stable and is supported by all political parties in the country.

Such reforms could also be a guideline for other countries, such as Switzerland. In March there is a vote on a pension initiative that wants to raise retirement age by 2033 to 66 years and demands a coupling to life expectancy.

FAZ are reported that these reforms are considered necessary to prevent a future pension crisis.

More details about the Danish pension system can be found at FOCUS .

Additional developments and comparisons to pension reform in Switzerland are treated at