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Business Insider
23-05-2025
- Business
- Business Insider
This country just raised the retirement age to 70 — and others may follow
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-Jrgensen, 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.
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."
Yahoo
07-04-2025
- Business
- Yahoo
How much is the state pension going up and what is the triple lock?
The new full state pension went up by £472 a year on 6 April. The increase is linked to wages, which have risen by 4.1%. Under an arrangement called the "triple lock", the state pension goes up each year by the highest of 2.5%, inflation, or earnings growth. The state pension is a payment made every four weeks by the government, to people who have reached the qualifying age and have paid enough National Insurance (NI) contributions. In April 2025, the earnings link meant the state pension increased by 4.1%, making it worth: £230.25 a week for the full, new flat-rate state pension (for those who reached state pension age after April 2016) - a rise of £472 a year £176.45 a week for the full, old basic state pension (for those who reached state pension age before April 2016) - a rise of £363 a year In general, you need 35 years of qualifying contributions to get a full state pension. Some people may have gaps in their NI record if, for example, they have lived abroad or taken time off to care for children. You can make voluntary payments to boost your contribution history. From 6 April, you can only make payments for the previous six years Check your state pension age Check your state pension forecast and whether you can increase it Under the triple lock system, the state pension increases each April in line with whichever of these three measures is highest: inflation in the September of the previous year, using a measure called the Consumer Prices Index (CPI) the average increase in total wages across the UK for May to June of the previous year or 2.5% The triple lock was introduced by the Conservative-Liberal Democrat coalition government in 2010. It was designed to ensure the value of the state pension was not overtaken by the increase in the cost of living or the incomes of working people. Chancellor Rachel Reeves has said the Labour government will keep the triple lock until the end of the current Parliament. The big questions on the future of the triple lock The fight over women's state pensions More than 12 million people currently receive the state pension. Men and women born between 6 October, 1954 and 5 April, 1960 start receiving their pension at the age of 66. But for people born after this date, the state pension age is increasing: a gradual rise to 67 for those born on, or after, 5 April 1960 a gradual rise to 68 between 2044 and 2046 for those born on, or after, 5 April 1977 The International Longevity Centre, a think tank, argues that the UK will have to increase the state pension age to 71 by 2050, to keep the cost sustainable. The state pension cost £124.1bn in 2023-2024, just under half the total amount the government spent on benefits. Depending on their overall income, those above retirement age may also be entitled to pension credit in addition to the basic state pension. From April 2025, pension credit also increased by 4.1% meaning it will top up weekly income to: £227.10 if you are single - a rise of £465 a year £346.60 if you have a partner - a rise of £710 a year If your income is above the stated limits, you may still be eligible for pension credit if you have a disability or care for someone. Anyone who qualifies for pension credit may also be entitled to other financial support, including housing benefit, a reduction in council tax, help with heating costs and the warm home discount scheme. Check if you can get pension credit Since winter 2024/2025, only those on pension credit or other means-tested benefits are eligible for the winter fuel payment. Previously, everyone in England and Wales born before 25 September 1957 was entitled to the payment, which is worth either £200 or and £300, depending on your circumstances. About 10 million people were affected. Several charities and MPs criticised the policy over fears that hundreds of thousands of people on a relatively small income would miss out because they do not claim pension credit In September 2024, the government's own analysis suggested around 780,000 pensioners in England and Wales would lose their winter fuel payment as a result of not claiming benefits to which they were entitled. The Scottish government also said it will end pensioners' universal entitlement to Winter Heating Payment. How much is the winter fuel payment and who can still get it? Will the pensions increase make up for the loss of winter fuel payments?
