Denmark agrees to new early retirement option

Denmark agrees to new early retirement option

Denmark’s government and other relevant parties have agreed on a new early retirement option for employees, including the self-employed that have had long and hard working lives. The government will soon submit a bill to parliament, and the early retirement option is expected to begin in January 2022.

Highlights

  • The early retirement option is based on the number of years an individual has worked. For example, a 61-year-old individual who has been in the labor market for 44 years can retire three years before the national retirement age, and 42 and 43 years will allow retirement one or two years early.
  • Certain periods when individuals do not work full-time (such as a period of unemployment, sickness, part-time work, maternity leave or compulsory internship periods) will not count against calculating the number of years in the labor market.
  • The agreement also includes measures to improve the working environment. For example, DKK 100 million will be set aside in 2023 and private and public workplaces can apply for funds to improve the mental and physical work environment. 

According to the employment ministry, 41,000 full-time employees are expected to be entitled to early retirement in 2022, and 24,000 full-time employees are expected to exercise the right.

Related resource

Heine H. Olsen
by Heine H. Olsen

Principal, Mercer Health

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Speak with a Mercer consultant
Provide your contact information to get in touch
*Required Fields