Latest news with #AneHalsboe-Jørgensen
Yahoo
23-05-2025
- Politics
- Yahoo
Denmark raises retirement age to 70 — the highest in Europe
Denmark is set to have the highest retirement age in Europe, after lawmakers voted to raise it to 70. Parliamentarians passed a bill mandating the rise on Thursday, with 81 votes in favor and 21 against. The new law will apply to people born after December 31, 1970. The current retirement age is 67 on average, but it can go up to 69 for those born on January 1, 1967, or later. The rise is needed in order to be able to 'afford proper welfare for future generations,' employment minister Ane Halsboe-Jørgensen said in a press release Thursday. Denmark has a population of almost 6 million people, with around 713,000 between the ages of 60 and 69, and around 580,000 aged between 70 and 79, according to the official Statistics Denmark website. 'Developments in recent years clearly show a marked increase in the number of Danes who continue to work until — and beyond — the state pension age,' F&P, the Danish trade association for insurance companies and pension funds, said in a press release Friday. Approximately 80,000 people over the state pension age are currently in work in Denmark, according to F&P, which put the increase down to good economic conditions, employers being more flexible, better financial incentives and a greater desire to continue working. 'For many Danes, the idea of the state pension age increasing to 70 by 2040 may seem overwhelming,' Jan V. Hansen, the director of pensions at the association, said in the release. 'However, the figures clearly demonstrate that a growing number of Danes are remaining in employment for longer periods.' 'The good news is that many Danes not only have the health but also the desire to continue working — even after reaching the state pension age,' he continued. Denmark's socialist Red-Green Alliance, however, described the vote by 'the government and the right wing' in a post on Facebook as 'unreasonably high,' and condemned the change in light of the 'great' pension conditions enjoyed by many ministers who can retire at age 60. 'It is incomprehensible. It cannot be explained. And it cannot be defended,' Pelle Dragsted, a member of parliament for the party, said in another Facebook post, noting that teachers, scaffolders and many others in physically demanding jobs have said they cannot keep going for that long. Denmark is the first European country to set its national retirement age beyond the 60s. The move will make it one of the highest in the world, on par with Libya. In France in March 2023, more than a million people took to the streets nationwide to protest a rise in the retirement age to 64 — six years below the new Danish retirement age. In September, the Chinese government passed legislation that would see the retirement age for men raised from 60 to 63, and from 50 and 55 for women, depending on their occupation, to 55 and 58, respectively. The state pension age in the UK is set to rise to 67 between 2026 and 2028, although a review could see it revised to 68. While the retirement age in the United States is similar to the UK's, some Social Security benefits are available from age 62. Better health in old age, increased life expectancy and remote working are allowing more Americans to work into old age. However, research shows that it is often a lack of money that keeps them working longer.
Business Insider
23-05-2025
- Business
- Business Insider
This country just raised the retirement age to 70 — and others may follow
Denmark has officially raised its retirement age to 70 — and other countries may make similar moves. The Danish Parliament passed legislation on Thursday that will gradually raise the retirement age to 70 by 2040. The change applies to anyone born after December 31, 1970. The bill, which passed with 81 votes in favor and 21 against, marks one of the most significant changes to the state pension age in Europe. It also signals a broader shift in how developed economies are preparing for aging populations and mounting fiscal pressures. The move stems from a 2006 welfare agreement that ties the pension age eligibility to life expectancy. With people living longer, the government argues that raising the retirement age was needed to keep the pension system financially sustainable. "In 2040, we will raise the retirement age from 69 to 70 years, among other things, to afford proper welfare for future generations," Ane Halsboe-Jørgensen, Denmark's employment minister, said in a statement following the vote. She said it would be the last time her party voted for an increase under the current system, citing the need for a fairer model that reflected differences in career length and job type. The decision has sparked anger from unions and workers in physically demanding sectors such as construction and agriculture. Denmark's largest trade union, 3F, has argued that the policy will disproportionately burden lower-income workers. It said surveys had found three-quarters of their members doubted they could keep working into their 70s. Pension changes have become a flash point across Europe. Just two years ago, France was rocked by months of mass protests and strikes after President Emmanuel Macron's government raised the retirement age from 62 to 64. Nonetheless, as demographic pressure mounts globally, Denmark's move may be a bellwether. Countries including Germany, the Netherlands, and the UK have already scheduled retirement age increases to 67 by 2031, 2028, and 2028, respectively. With life expectancy continuing to rise, birth rates falling, and the need for a sustainable ratio of workers to retirees, economists and researchers say retirement ages will probably need to be pushed back further. A 2024 report from the UK's International Longevity Centre projected that Britain would have to raise the retirement age to 71 by 2050 to maintain the ratio of workers to retirees. Similarly, in the US, the retirement age for full Social Security benefits has already been raised from 65 to 67. While Republicans have proposed a further increase, President Donald Trump said on the campaign trail in June 2024 that he would "not raise the retirement age by one day."
