Denmark is projected to see a significant increase in its population over the age of 80 in the coming decades, potentially posing challenges for public finances. Statistics Denmark forecasts that by 2039, this age group will comprise 8 percent of the population, rising to 10.3 percent by 2070, representing 650,000 people.

Tore Stramer, chief economist at the Danish Chamber of Commerce, warns that this demographic shift could strain public finances. Older individuals typically require more healthcare services and rely on national pensions.

The projection also indicates a stagnation in the 20 to 64 age group by 2030, which could further exacerbate the financial strain. This demographic is crucial as it contributes a substantial portion of tax revenue through labor market participation.

However, Helle Dalsgaard, chief advisor at Sampension, points out that increasing numbers of people are saving for retirement through occupational pensions. This trend could help mitigate the pension pressure on public funds.

Dalsgaard advises individuals to ensure their pension savings can sustain them for an extended period. Longer life expectancies necessitate larger savings to maintain a desired standard of living in retirement.

It’s important to note that Statistics Denmark’s projection relies on assumptions about immigration, emigration, mortality, and fertility rates. The forecast is subject to uncertainty and may not be entirely precise.