Highest Retirement Age Across Europe: Denmark Leads the Pack
Denmark set to Boast Highest Retirement Age in Europe by 2040
In a recently adopted law, Denmark's parliament raised the country's retirement age to 70 by 2040, drawing mixed reactions both at home and abroad. The decision, which was supported by an overwhelming majority in parliament, aims to strengthen the financial sustainability of the pension system as life expectancies continue to increase.
Under the new law, the retirement age will increase from the current 67 to 68 in 2030 and 69 in 2035. Born after December 31st, 1970, will be the first cohort to retire at 70. This development is predicted to make Denmark home to the highest retirement age in Europe, as reported by the BBC.
Though the decision was well-foreseen, the prospect of a retirement age surpassing 70 has sparked concerns among Danes, particularly those in physically demanding jobs such as construction and agriculture. Protests against the measure have been taking place in Copenhagen, with labor unions expressing their disapproval.
The trade union movement contends that this policy will disproportionately impact lower-income workers, with surveys conducted by Denmark's largest union, 3F, showing that three-quarters of its members have doubts about their ability to work past the age of 70.
The Social Democratic party, which leads the government, has proposed its 'Arne Pension' policy to offer better options for early retirement for individuals in physically demanding positions. However, this is not thought to be enough to prevent further adjustments to the retirement age before the next vote on the issue is due in 2030.
Prime Minister Mette Frederiksen stated last year her intention to renegotiate the automatic mechanism that has been in place since 2006, which depends on parliamentary approval to raise the retirement age every five years. "We no longer believe in the automatic way the retirement age is raised," she noted.
Moving forward, the government could implement a model proposed by a commission in 2022, which seeks to reduce the link between life expectancy and retirement age. This adjustment would prevent equivalent increases in life expectancy from automatically resulting in pension eligibility increases, ensuring long-term sustainability of public finances.
Another point of debate concerns Denmark's stance on the European Convention of Human Rights, as it and eight other EU states chimed in with an open letter urging a reconsideration of the convention's interpretation, particularly in relation to migration. The letter calls for "a new and open-minded conversation about the interpretation of the European Convention on Human Rights."
This initiative comes as Denmark has been pursuing tougher migration policies under the leadership of the Social Democrats. One area of concern regards the current legal framework's perceived restrictiveness in revoking the Danish citizenship of dual citizens convicted of crimes, as well as limiting the ability to deport them.
The government has already begun a review of its obligations and options related to the ECHR and the European Court of Human Rights, focusing specifically on migration issues. Prime Minister Frederiksen posits that the current interpretation of the conventions is too difficult for authorities to deport foreign criminals who have no intention of becoming part of Danish society.
As Danish Prime Minister Mette Frederiksen and Italian Prime Minister Giorgia Meloni have taken a hardline stance on migration, discussions within the EU are currently underway to make it easier to establish asylum centers outside of Europe, bringing another of the Social Democrats' longstanding migration policies to the fore. The open letter from the nine EU nations serves as the next step in advocating for this change.
- The new law, which raises Denmark's retirement age to 70 by 2040, places Denmark in the lead among European countries, according to the BBC general news.
- The Social Democratic party, in response to concerns about the impact on physically demanding jobs, has proposed its 'Arne Pension' policy to offer better options for early retirement.
- Meanwhile, Denmark and eight other EU states have sent an open letter urging a reconsideration of the European Convention of Human Rights' interpretation, particularly in relation to migration.
- In the realm of art and self-development, Denmark's tougher migration policies under the Social Democrats are sparking debate, with discussions within the EU underway to establish asylum centers outside of Europe.
