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.




  • The international who shaped Copenhagen

    The international who shaped Copenhagen

    Anna Maria Indrio is one of the most important architects in Denmark, having contributed to shaping Copenhagen into what it is today. Among her best-known projects are the extension of SMK and Arken, as well as the Natural History Museum and the Darwin Centre in London. She moved here 60 years ago, when “Copenhagen was gray and dormant. Predictions suggested it would become depopulated. But putting people at the center changed everything,” she said

  • Danish government passes amendment to increase citizenship fee by 50%

    Danish government passes amendment to increase citizenship fee by 50%

    Fees were raised to reflect processing costs and curb repeat applications, creating debate over whether the new charges erect barriers to political participation for internationals.

  • Internationals’ labour contributes 361 billion DKK to Denmark’s GDP, and it is growing strongly every year

    Internationals’ labour contributes 361 billion DKK to Denmark’s GDP, and it is growing strongly every year

    According to a report by the Danish Chamber of Commerce, internationals’ contribution is 12% of the country’s GDP. In 2023, it was 322 billion DKK, and in 2008, it was 136 billion DKK. “Internationals make a gigantic difference in our prosperity and welfare,” comments Morten Langager, the Director of Dansk Erhverv.

  • Inside Denmark’s innovation engine

    Inside Denmark’s innovation engine

    With half of its staff being international, the BioInnovation Institute reflects Denmark’s broader transformation into a global innovation hub. But can the country—and Europe—keep up the pace? “If reforms are made now, we can close the gap in ten years,” explains BII’s CEO

  • Denmark launches massive investment in the navy

    Denmark launches massive investment in the navy

    Two months ago, the Danish PM announced that military equipment should be purchased in a hurry. The first plans for the sea are now ready. Additional plans for warships will follow this summer.

  • International designers struggle to find jobs in Denmark

    International designers struggle to find jobs in Denmark

    Many internationals come to Denmark to work as designers, but the field appears to be one of the hardest to break into. The Copenhagen Post spoke with two internationals struggling to find their way into the industry.

Connect Club is your gateway to a vibrant programme of events and an international community in Denmark.