A new analysis reveals a growing disparity between the rising retirement age in Denmark and the average lifespan of its citizens, prompting concerns that the current system is unsustainable. The trade union Akademikerne highlights that the retirement age is increasing at a faster rate than life expectancy, potentially leading to a situation where Danes spend a significant portion of their later years working, impacting their quality of life and potentially undermining the financial basis of the Danish economy.

The Danish Parliament is set to vote on raising the retirement age to 70 by 2040, which exacerbates the existing problem. By 2070, the difference between retirement age and expected lifespan is projected to be almost two years, and three years when considering “healthy lifespan,” the period during which individuals are expected to be active and healthy.

Experts like Hans Jørgen Whitta-Jacobsen, a former chief economist, warn that the current automatic increase in retirement age is illogical and unsustainable. He suggests exploring alternatives such as converting higher life expectancy into increased leisure time. Whitta-Jacobsen fears that the current trajectory could lead to a future decision to fix the retirement age, which he believes would be detrimental to public finances.

While the Social Democrats have indicated a willingness to reconsider the current system, concrete action remains uncertain. Despite a secret committee within the Social Democrats reportedly planning the party’s position on the pension issue, the Minister for Employment remains noncommittal. She emphasizes that the government will uphold the existing agreement for the time being but suggests a potential renegotiation in the future.

Critics, including Tomas Kepler from Akademikerne, argue that the government needs to address the issue promptly. They urge immediate discussion about the automatic increase mechanism in the welfare agreement to prevent erosion of the economic foundation of Denmark.