Danes are retiring from work later than ever: study

Danes are heading into retirement three years later than they did 14 years ago, a new study suggests.

Danes are retiring from work later than ever: study
Photo: senior employee/Depositphotos

From 2004 to 2017, the average retirement age in Denmark increased by three years from just over 62 to more than 65 years. 

That’s according to new data from life insurance experts Forsikring & Pension, writes leading Danish daily Politiken.

As a result of over 60s staying at work for longer, Denmark’s workforce has grown by 87,000 people, at a time when Danish companies are in desperate need of hiring more employees.

This delay in the retirement age is a key reason why the number of people in work in Denmark has reached record numbers: nearly three million.

“Many jobs have become less arduous, making it more feasible to continue into older age,” Michael Stores, economic adviser and professor of economics at the University of Aarhus, told Politiken.

“We’re also seeing a higher level of education in Danish society, and we know that the more education people recieve, the longer they wish to continue working.

Stores also pointed out that better health standards among Denmark’s older people is helping to extend their working life.

But financial experts are not yet convinced that an older Danish population won’t result in more people being dependent on state pensions and public assistance in future, as well as fewer people in work paying taxes.


Denmark’s average life expectancy increases again after 2018 plateau

The average life expectancy of Danes continued to increase last year, highlighting the importance of retirement plans.

Denmark’s average life expectancy increases again after 2018 plateau
File photo: Jens Nørgaard Larsen/Ritzau Scanpix

The average life expectancy in Denmark has increased steadily since the beginning of the 1990s, but in 2018 stood still for the first time since that decade, with an average life expectancy of 79 years for men and 82.9 years for women in the Scandinavian country.

2019 saw the established trend resume, however, with the average life expectancy of men and women increasing by 0.31 years and 0.27 years respectively.

The average life expectancy for men is therefore now 79.3 years and 83.2 years for women, according to Statistics Denmark data.

Average life expectancy is defined as the average number of years a person born today can expect to live.

With the population of Denmark growing older, increased demands are placed demands on the country’s pension system, according to Brian Friis Helmer, a personal finances specialist at bank Arbejdernes Landsbank.


“When we can expect to get older, we are faced with two choices: save more for retirement or remain on the labour market — at least if we want to maintain our standard of living when we retire,” Helmer said via a written comment.

The advisor recommended early planning for retirement and savings.

“Of course, that plan will change throughout life as you maybe find a partner or spouse, children, house and car. But that’s precisely why it’s important to continuously adjust the plan and your wishes for life as a pensioner,” he said.

“This way you ensure that you are always saving the right amount,” he added.

In addition to pension savings, assets can also take the form of property or funds such as a balance in a regular bank account, Helmer also noted.