Could Denmark delay plan to increase retirement age?
A Danish commission said on Tuesday it thinks the country’s planned increase to the retirement age should be slowed.
Recommendations from the government’s pension commission suggest changing the planned changes to the retirement age, at which residents of Denmark can begin to withdraw the country’s state folkepension.
Under the advice of the commission, planned changes to the retirement age could be delayed such that people currently 18 years old may be able to retire two years earlier than they would under the current schedule.
The Pensions Commission on Wednesday presented its proposals for Denmark’s future pensions system.
According to broadcaster TV2, the commission wants to slow down planned changes to the retirement age from 2045 onwards.
The aim of the commission is to allow different generations to spend the same proportion of their lives as pensioners, in line with expected changes to life expectancy.
Previously, the aim of the retirement age plan was to result in the same number of years spent drawing the pension.
But the commission wants to change this so that retirement age becomes 80 percent of life expectancy.
Such a change in policy would cost the Danish state billions of kroner in increase spending on pensions, but is not expected to reduce the long-term stability of the economy.
80,000 fewer people would be on the labour market at the end of the century should the plan be changed in line with the recommendation, according to the commission.
READ ALSO: Why is the number of pensioners in Denmark decreasing?
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Recommendations from the government’s pension commission suggest changing the planned changes to the retirement age, at which residents of Denmark can begin to withdraw the country’s state folkepension.
Under the advice of the commission, planned changes to the retirement age could be delayed such that people currently 18 years old may be able to retire two years earlier than they would under the current schedule.
The Pensions Commission on Wednesday presented its proposals for Denmark’s future pensions system.
According to broadcaster TV2, the commission wants to slow down planned changes to the retirement age from 2045 onwards.
The aim of the commission is to allow different generations to spend the same proportion of their lives as pensioners, in line with expected changes to life expectancy.
Previously, the aim of the retirement age plan was to result in the same number of years spent drawing the pension.
But the commission wants to change this so that retirement age becomes 80 percent of life expectancy.
Such a change in policy would cost the Danish state billions of kroner in increase spending on pensions, but is not expected to reduce the long-term stability of the economy.
80,000 fewer people would be on the labour market at the end of the century should the plan be changed in line with the recommendation, according to the commission.
READ ALSO: Why is the number of pensioners in Denmark decreasing?
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