Foreign Minister Lars Løkke Rasmussen has proposed a significant overhaul of the Danish pension system, potentially abolishing existing early retirement schemes. The proposal aims to simplify the current complex system and move away from political attachments to specific programs.

Specifically, the reform would eliminate the Arne pension, senior pension, and early retirement benefit (efterløn). This marks a shift in Løkke’s stance, as he previously insisted on a government agreement regarding pension reform.

The Social Democrats, a key government partner, have expressed reservations about the proposal. Employment Minister Ane Halsboe-Jørgensen affirmed the party’s commitment to preserving “good, solid and early retirement schemes” like the Arne pension.

Løkke suggests replacing the current system with a “part-time pension.” This would allow individuals approaching retirement age to reduce their working hours, with the state compensating for the wage loss through pension benefits. He also mentioned a form of “assessment” for those currently receiving Arne or senior pensions who are unable to work.

The Danish Trade Union Confederation (Fagbevægelsens Hovedorganisation) criticized the proposal as lacking understanding of the reality faced by wage earners. Chairman Morten Skov Christiansen emphasized the need for sustainable solutions that allow workers with long and demanding careers to retire with dignity.

The Confederation of Danish Industry (Dansk Industri) welcomed Løkke’s initiative to reform the pension system. Political director Morten Høyer highlighted the importance of reform to address Denmark’s current and future labor shortages.