What country raised the retirement age to 70? Understanding Denmark's Landmark Reform

Oct 18, 2025 3 min read •

senior care Healthy Aging Retirement Planning

With average life expectancy trending upward globally, many national pension systems are facing severe strain. This has spurred major reforms in some countries, but you might be wondering, what country raised the retirement age to 70? The answer is Denmark, a move made in response to significant demographic shifts.

Quick Summary

Denmark's parliament has approved gradually increasing its state pension age to 70 by 2040, aligning it with rising life expectancy. The decision addresses financial sustainability concerns within its pension system, joining a global trend of extending working lives.

Key Points

Denmark's Reform: The country has approved a plan to gradually increase its state pension age to 70 by 2040, making it one of the highest in Europe.
Response to Longevity: The policy is a direct response to rising life expectancy and declining birth rates that have strained national pension systems globally.
Fiscal Necessity: Increasing the retirement age helps ensure the long-term financial sustainability of the public pension system by increasing contributions and shortening benefit payout periods.
Unequal Impact: Critics point out that this change may disproportionately harm low-income workers and those in physically demanding jobs, who often have shorter life expectancies.
Global Trend: Denmark's move is part of a broader, global trend where many nations are contemplating or implementing measures to extend working lives.

A Global Trend Toward Longer Working Lives

The decision by Denmark's parliament to increase the state pension age is part of a larger, global demographic trend. Across developed nations, populations are living longer while birth rates are declining, creating an imbalance in the traditional social security model. Fewer working-age people are supporting an increasingly larger, longer-living retired population, putting immense pressure on public finances and pension funds. Many countries, including the United States, have already raised their retirement ages or are debating further increases.

Denmark's Progressive Retirement Reform

While the current public pension age in Denmark is 67, the country's government has implemented a phased approach to raise it further. This is a direct outcome of a 2006 agreement that linked the retirement age to life expectancy. The plan will increase the age incrementally: to 68 in 2030, 69 in 2035, and reaching 70 by 2040. This ensures that future generations will work longer to support the system. The reform, however, does not prevent individuals with private pensions from retiring earlier if they have the financial means.

Driving Factors Behind the Increase

Several key drivers influenced Denmark's decision, mirroring challenges seen worldwide:

Demographic Shifts: The most significant factor is the changing population structure. As people live longer, the period over which pensions must be paid out extends, requiring more contributions to maintain solvency.
Economic Sustainability: By raising the retirement age, the government can improve the financial health of the pension system. It increases the workforce's tax contributions while reducing the total number of years that retirees collect benefits, thereby helping control government spending.
Fiscal Responsibility: As experts from organizations like the OECD and MarketWatch have noted, countries like Denmark and China are taking action to address mounting pension liabilities before they create a greater fiscal crisis.

Implications for Workers and Society

While intended to strengthen the system, raising the retirement age has complex implications. Critics argue that an across-the-board increase disproportionately affects lower-income individuals and those in physically demanding jobs, who often have lower life expectancies and may not be able to work as long. This can exacerbate existing inequalities. Furthermore, delaying retirement can put added stress on a worker's health, though some studies suggest the effects vary depending on the nature of the work.

For the labor market, a higher retirement age also signals a need for employment policies that support older workers. This includes providing opportunities for reskilling, implementing flexible work arrangements, and fostering age-inclusive workplaces. Without these complementary reforms, older workers may face increased economic insecurity.

A Comparative Look at Retirement Ages

To put Denmark's plan in perspective, consider how other nations are handling the challenge of aging populations. The following table provides a comparison of current and future retirement ages in select countries.


Country	Current Full Retirement Age	Projected or Planned Future Changes	Rationale for Change
Denmark	67	Gradually increasing to 70 by 2040	Tie to life expectancy to ensure pension system sustainability.
United States	67 (for those born 1960+)	Proposals exist, but no law passed to raise further. Maximum benefits at 70	Address projected Social Security shortfall due to demographics.
Germany	66	Gradually increasing to 67 by 2031	Fiscal pressure from a growing retired population.
China	60 (men) / 55 (women)	Gradually increasing to 63 (men) and up to 58 (women) by 2040	Respond to its unprecedented demographic aging.
Netherlands	67	Will increase to 67 years and 3 months in 2028	Tied to projected increases in life expectancy.

How Individuals Can Prepare for a Longer Work Life

With the retirement landscape shifting, it is more important than ever for individuals to take an active role in their financial and career planning. For future retirees, this may mean working longer, but also leveraging that extra time to boost savings. For example, delaying Social Security benefits until age 70 in the U.S. can significantly increase monthly payments. Individuals should also consider career paths that are less physically demanding or explore options for flexible work arrangements as they age.

Conclusion

In summary, the answer to "what country raised the retirement age to 70" is Denmark, but its move reflects a much larger, global conversation about healthy aging and financial sustainability. The decision highlights the necessity for proactive policy reform in the face of demographic shifts. As countries grapple with aging populations, individuals must also adapt their retirement strategies. The OECD provides further insights into these global trends in their Pensions at a Glance report, a valuable resource for understanding the complexities of pension systems worldwide OECD Pensions at a Glance.

Frequently Asked Questions

Denmark raised its state pension age to 70, with the change being phased in by 2040. The primary reason is to ensure the long-term financial sustainability of the pension system in response to a growing older population and increased life expectancy.

The increase to the state pension age applies to all residents entitled to the basic public pension. However, those with private pension savings may still be able to retire earlier if they have the financial means to do so.

No, Denmark is part of a wider global trend. Other countries like the Netherlands and China are also increasing their retirement ages. In the U.S., proposals to raise the age further, potentially to 70, have been debated.

An across-the-board increase in the retirement age can disproportionately affect lower-income workers. These individuals often have shorter life expectancies and may be in physically demanding jobs, making it harder for them to work until a later age.

Economically, a higher retirement age increases tax revenues from a larger, working population and reduces long-term pension payouts. This helps shore up the solvency of the national pension system over time.

Countries with reformed pension systems, like Denmark, often have other social programs or early pension options available. However, retiring earlier can mean receiving a reduced benefit amount.

Individuals can prepare by focusing on personal financial planning, increasing retirement savings, and exploring career options that are sustainable into later life. Flexibility and continuous learning are becoming more important.

References

Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice. Always consult a qualified healthcare provider regarding personal health decisions.