Danish political parties have expressed mixed reactions to Foreign Minister Lars Løkke Rasmussen’s proposal for a comprehensive overhaul of the pension system, which includes phasing out early retirement schemes like “efterløn,” the Arne pension, and senior pension, in favor of a part-time pension system.

Dennis Flydtkjær, finance spokesperson for the Denmark Democrats, voiced strong opposition, stating that Lars Løkke Rasmussen’s plan would create “enormous insecurity” among Danes regarding their pensions. He criticized the government for unsettling the pension system and emphasized the need for security, suggesting that the rising retirement age should be addressed through negotiations.

The Conservatives and Liberal Alliance, who were part of the VLAK government that introduced the senior pension in 2019, showed more openness to the proposal. Sólbjørg Jakobsen (LA) mentioned that getting rid of the various schemes “makes sense overall,” though she noted the lack of specificity in Løkke’s proposal.

Mette Abildgaard (K) acknowledged that Løkke’s reform zeal and desire to increase labor market participation were positive, but found the proposed model unnecessarily complicated. Abildgaard also suggested removing the Arne pension, viewing it as an unnecessary scheme that lacks individual wear-and-tear assessment.

Lars Løkke Rasmussen’s proposal includes a part-time pension where individuals can reduce their working hours and salary before retirement age, with the state providing compensation through a form of pension benefit.

Liberal Alliance has presented an alternative proposal called FriPension, allowing Danes to contribute 675 kroner monthly tax-free, which can be withdrawn later for early retirement. Jakobsen explained that this approach aims to give people themselves the opportunity for early retirement without burdening the treasury.

The proposal comes after Prime Minister Mette Frederiksen (S) also raised concerns about the future retirement age a year ago, announcing that the Social Democrats would no longer support the automatic increase in the retirement age from 2030.