The Danish government’s Arne-pension (early retirement scheme) is proving less popular than anticipated, with the number of recipients declining, while the senior pension scheme is gaining traction. Despite being a key policy of Prime Minister Mette Frederiksen, the Arne-pension is seeing a decrease in beneficiaries, contrasting with the increasing popularity of the senior pension introduced by former Prime Minister Lars Løkke Rasmussen.

The number of Arne-pension recipients has fallen from 12,500 in June of last year to a projected 4,200 in 2040. This decline is occurring even as the number of elderly people in Denmark is rising.

Almost 30,000 Danes now receive the senior pension, a benefit that Mette Frederiksen previously attempted to eliminate. Lars Løkke Rasmussen believes the senior pension’s appeal lies in its suitability for individuals who are genuinely worn down.

The Arne-pension was marketed as a means for worn-down Danes to retire with dignity, with brewery worker Arne Juhl as its public face. However, eligibility for the Arne-pension is based solely on seniority in the labor market, requiring 42 years of work with less than six years until state pension age, regardless of being worn down or not.

In contrast, the senior pension requires a medical assessment of being worn down but offers significantly higher benefits, up to 6,000 kroner more per month. This has led many to opt for the senior pension despite one of the arguments for the Arne-pension being that worn-down Danes should not have to seek a doctor’s assessment to retire.

Initially opposed by bourgeois parties, the Arne-pension was criticized as expensive and redundant, given the existence of the senior pension. While there were discussions about merging the two schemes, the plan faced opposition from trade unions and other parties, ultimately preserving both schemes.

Despite the trends, the Social Democrats maintain that the Arne-pension is crucial for many Danes in demanding jobs, emphasizing the right to choose retirement. However, they acknowledge that the senior pension is more attractive for those eligible for both, although they still think that Arne-pension has nothing to do with being worn down.