Denmark Raises Retirement Age to 70 – What It Means for UK Pension Reform

Why Denmark is Moving the Goalposts

In May 2025 the Danish Parliament voted to lift the official retirement age from 67 to 70, with the change phased in over the next 15 years. The plan isn’t a sudden jump; it bumps the age to 68 in 2030, 69 in 2035 and finally 70 by 2040. The rule applies only to people born after December 31, 1970, meaning a whole new generation of workers will feel the impact.

Denmark’s decision builds on a 2006 welfare pact that ties pension age to life expectancy. Every five years a review checks whether the retirement age still matches how long people live. Recent figures from Insurance and Pension Denmark show the average retirement age already sits at a record 67.1 years – up almost ten months since the end of 2023. That rise isn’t just a statistical quirk; it reflects a sturdier labour market and a cultural shift where seniors are happy to keep working.

Jan V. Hansen, director of pensions at the same institute, says the trend is “driven by political reforms that have raised both the early retirement and state pension ages, plus a strong labour market where more seniors are choosing to stay in work – often for years beyond the state pension age.” In other words, it’s not just a top‑down mandate, it’s also a bottom‑up reality.

But not everyone is cheering. Kirsten Evans, a 53‑year‑old bank clerk who will be subject to the new rules, told reporters she feels 70 is “old” and worries about enjoying life after retirement. Even with a comfortable savings cushion, she plans to stop working around 65 or 66, accepting a reduced pension in exchange for more free time.

Employers, however, are getting on board. Six major Danish firms have launched a joint effort to make the workplace more attractive for senior staff. Their strategy focuses on flexible hours, part‑time options, and training programs that keep older employees engaged and productive.

Could Britain Walk the Same Path?

The Danish move has lit a fire under pension analysts worldwide, especially in the UK where the state pension age is already set to reach 68 by 2046. The question on everyone’s mind: should Britain push even further?

British officials are aware of the fiscal strain that an ageing population brings. The Office for National Statistics projects that by 2050, one in five Britons will be over 65, a ratio that will put a heavy load on the public purse. Raising the pension age further could, in theory, ease that pressure, but the UK’s social landscape looks very different from Denmark’s.

“You can’t just copy‑paste Denmark’s model into the United States or the UK,” warns Alicia H. Munnell of the Center for Retirement Research. The United States, for instance, has a poverty rate three times higher than Denmark’s and a far wider gap between the rich and the poor. The UK sits somewhere in between, with notable regional disparities and a growing number of low‑paid workers who physically cannot keep working into their late sixties.

That’s why many experts advocate a more nuanced approach for Britain. Instead of a blanket age hike, they suggest a tiered system: keep a lower retirement age for those in physically demanding occupations – think construction, nursing, or logistics – while nudging higher‑earning, healthier professionals toward a later exit.

Another idea gaining traction is linking pension age to individual health metrics rather than a single calendar age. Critics say this could be invasive and hard to administer, but proponents argue it would better reflect reality – a 62‑year‑old who can still lift 30‑kilogram boxes safely shouldn’t be forced out of the workforce.

Public sentiment in the UK is skeptical. A recent YouGov poll found that 58% of respondents would oppose any further increase beyond the current schedule, citing concerns over fairness and the desire to enjoy a “second act” after decades of work. Yet, a growing share – about 30% – believes a later retirement is inevitable given longer life spans.

Political parties are already threading these concerns into their manifestos. The Labour Party promises to protect the current retirement age for low‑paid workers, while the Conservatives talk about “responsible reform” that balances fiscal sustainability with personal choice.

Meanwhile, the private sector is experimenting with its own solutions. Several UK firms have rolled out “silver‑adjust” programs, offering older staff the chance to shift into mentorship roles, reduce hours without a pay cut, or take on project‑based work that lowers physical strain.

• Flexible scheduling – employees choose when to work, often swapping early morning for later shifts.
• Skill‑refresh courses – funding for older workers to learn new digital tools.
• Health‑first policies – on‑site physiotherapy and ergonomic assessments.

These employer‑led initiatives echo Denmark’s collaborative model, showing that policy isn’t the only lever to extend working lives.

Globally, life expectancy is climbing fast – from an average of 46.5 years in 1950 to a projected 76 years by 2050, according to the United Nations. That trend forces every nation to ask a hard question: how do we keep pension systems solvent while still rewarding people for a lifetime of work?

Denmark’s bold step provides a concrete example – a country willing to openly confront the numbers, adjust its legislation, and back it up with workplace reforms. Britain can learn from that playbook, but it will need to tailor the solution to its own economic realities, inequality levels, and cultural expectations.

One thing is clear: the conversation about retirement age isn’t going away. Whether the UK decides to nudge its pension age upward or adopts a more flexible, health‑based framework, the goal will remain the same – ensuring that retirees have enough income while keeping the system financially sustainable for future generations.

As policymakers, employers, and workers keep debating, the Danish experiment will be watched closely, serving as a living laboratory for how societies might adapt to longer, healthier lives. The next decade will likely see more pilots, more data, and perhaps a new norm where the traditional 65‑year “retirement” milestone looks increasingly outdated.