The efterløn effect: Rise in EU retirement age not replicated in Denmark

Danes only working for 0.2 years longer than they were in 2005, compared to a European average of 1.9

Despite ever-increasing political will to encourage citizens to work up to and beyond the 65-year retirement age, Danes are only remaining in employment for 0.2 years longer than they were in 2005, according to new Eurostat figures.

The Danish increase was a long way short of the 1.9-year average in the EU, where governments are increasingly addressing escalating numbers of pensioners by encouraging them to remain employed.

Efterløn mainly to blame
The Danish government has been no slouch. According to a 2011 reform, the retirement age will rise to 67 in 2022 and eventually to 69.

But any significant increase in the average retirement age in Denmark over the last decade has been held back by the state-subsidised, early retirement program efterløn, which enables Danes to retire at the age of 60, and has proven to be a huge drain on the public coffers.

When it was first introduced in 1979 as a means to create more jobs for young people, the projections fell a long way short of the reality – just 17 percent of the eventual figure in fact – and in 2009, 135,503 Danes were on efterløn at an annual cost of 37 billion kroner.

However, the 2011 reform changed the conditions for early retirement, and the numbers have since fallen heavily.

READ MORE: More than expected likely to forego early retirement scheme

In the workplace longer
In Malta, the average worker remains in employment for 5.1 more years than they did in 2005.

Nevertheless, Danes spend an average 39.2 years in employment, placing them third in the EU only behind the Netherlands (39.9) and Sweden (41.2).

This could partially be attributed to those countries’ rosy employment figures. The average in Italy, for example, is 30.7.




  • Bestselling author of ‘The Year of Living Danishly’ Helen Russell on why she moved back to the UK after 12 years

    Bestselling author of ‘The Year of Living Danishly’ Helen Russell on why she moved back to the UK after 12 years

    After more than a decade living in Denmark, Russell shares why she made the move, how she’s coping, what she already misses, and the exciting new projects she’s working on. “It’s been a very tough decision. I love Denmark, and it will always hold a special place in my heart,” she says.

  • Denmark launches first AI supercomputer

    Denmark launches first AI supercomputer

    The new Gefion AI supercomputer is one of the world’s fastest and will accelerate research and provide new opportunities in Danish academia and industry.

  • Navigating big love, big moves and big feelings

    Navigating big love, big moves and big feelings

    Experts believe it takes seven years to move into a new culture, according to leading Danish psychologist Jette Simon and therapist Vibeke Hartkorn. For expat couples, the challenges of starting a new life together in Denmark can put pressure on relationships, but emotions-focused therapy can help.

  • More and more Danes are working after retirement age

    More and more Danes are working after retirement age

    Politicians debate a lot these days about when you can retire. The reality shows that an increasing number of Danes like to work, even if they can withdraw from the labor market. Financial incentives help.

  • Environmental activist fears death in prison if extradited to Japan

    Environmental activist fears death in prison if extradited to Japan

    Canadian-born environmental activist Paul Watson has been in prison in Greenland for almost 100 days awaiting an extradition decision for a 14-year-old offence against a Japanese whaling vessel that he calls a “minor misdemeanor”. The 73-year-old had previously passed through Ireland, Switzerland, Monaco, France and the USA without trouble, before Greenlandic police arrested him in July.

  • Denmark too slow to ease recruitment rules for non-EU service workers, say industry associations

    Denmark too slow to ease recruitment rules for non-EU service workers, say industry associations

    When the Danish government in January presented the first of its schemes to make it easier to recruit foreign labour from outside the EU, it was hailed by the healthcare and service sectors as a timely and important policy shift. But while healthcare changes have been forthcoming, the service sector is still struggling, say the directors of the industry association Dansk Industri and one of the country’s largest private employers ISS.


  • Come and join us at Citizens Days!

    Come and join us at Citizens Days!

    On Friday 27 and Saturday 28 of September, The Copenhagen Post will be at International Citizen Days in Øksnehallen on Vesterbro, Copenhagen. Admission is free and thousands of internationals are expected to attend

  • Diversifying the Nordics: How a Nigerian economist became a beacon for inclusivity in Scandinavia

    Diversifying the Nordics: How a Nigerian economist became a beacon for inclusivity in Scandinavia

    Chisom Udeze, the founder of Diversify – a global organization that works at the intersection of inclusion, democracy, freedom, climate sustainability, justice, and belonging – shares how struggling to find a community in Norway motivated her to build a Nordic-wide professional network. We also hear from Dr. Poornima Luthra, Associate Professor at CBS, about how to address bias in the workplace.

  • Lolland Municipality launches support package for accompanying spouses

    Lolland Municipality launches support package for accompanying spouses

    Lolland Municipality, home to Denmark’s largest infrastructure project – the Fehmarnbelt tunnel connection to Germany – has launched a new jobseeker support package for the accompanying partners of international employees in the area. The job-to-partner package offers free tailored sessions on finding a job and starting a personal business.