Pension age and savings explained as Denmark eyes reform

Denmark’s government is preparing to renegotiate the country’s welfare agreement, which currently ties pension age to rising life expectancy, reports DR.

Under the existing 2006 welfare deal, the state pension age—when Danes become eligible for the universal folkepension—is set to climb. Those in their 20s today can expect to start receiving it at 74. The current age is 67.

The folkepension is a monthly state payment made from the eligibility age until death. To retire earlier, individuals must rely on personal savings or workplace pensions to cover living costs.

State pension costs reached 162 billion kroner in 2024, or roughly 13.5 billion kroner per month, making later eligibility a key cost-saving measure for the government.

Financial advisers recommend saving enough to maintain 80 percent of final salary in retirement. Many Danes already contribute to mandatory workplace pensions, with additional private savings possible.