Denmark will raise its retirement age to 70 in the year 2040, in a sign of the continent’s growing demographic decline. Denmark’s fertility rate is now 1.5, which is far below the replacement level of 2.1 which raises concerns about the viability of the pension system when there are not enough workers per retiree.
The move stems from an agreement in place since 2006 to review the pension age every five years to align it with life expectancy.
Currently at 67, it rises to 68 in 2030, and to 69 in 2035.
The latest change, to 70 by 2040, was approved last Thursday in the country’s legislature, with 81 votes in favour and 21 against.
The rise is needed in order to be able to “afford proper welfare for future generations,” employment minister Ane Halsboe-Jørgensen said in a press release Thursday.
