Denmark is facing a potential generational conflict as the retirement age continues to rise, potentially requiring Generation Z to work longer and receive fewer years in retirement compared to previous generations. The current welfare agreement, designed to ensure the stability of public finances, mandates an increase in the retirement age every five years.

Prime Minister Mette Frederiksen has signaled a potential shift in Social Democratic policy, suggesting a resistance to the automatic increases in the retirement age. Data indicates that the retirement age is increasing at a faster rate than the average life expectancy of Danes.

The core issue is that Denmark’s economy relies on the expectation that younger generations will contribute through taxes for an extended period to sustain the welfare system. This reliance could lead to a situation where Generation Z works well into their seventies.

The current system is perceived as unfair by some, potentially creating a “generational theft” where younger generations are burdened with longer working lives while older generations enjoy longer retirements. Canceling the increases to the retirement age, however, would create a significant hole in public finances.

The author suggests that Generation Z should focus on advocating for cuts in unnecessary public spending. The author argues that this action would allow for an earlier retirement age without jeopardizing the stability of Denmark’s public finances.