Denmark Raises Retirement Age to 70, Prompting Debate over U.S. Policy Shift

Denmark will raise its public pension retirement age to 70 by 2040, setting the highest retirement threshold in Europe and sparking renewed discussion over whether the United States might pursue a similar path.

The change in Denmark, initiated as part of a 2006 reform linking retirement age to life expectancy, will apply to individuals seeking public pensions starting in 2040. Currently, Danes can retire at 67, with gradual increases planned.

A serious older man in a formal suit | Source: Pexels

“This means simply that younger people today will have to work longer before they can go on retirement,” said Jesper Rangvid, professor at Copenhagen Business School. Rangvid emphasized that while basic public pension eligibility shifts, early retirement remains an option for those with sufficient private savings.

In the U.S., there is no official retirement age. Social Security benefits are available on a sliding scale between ages 62 and 70. While individuals receive the maximum benefit at age 70, only about 10% delay retirement to that age, despite more than 90% potentially benefiting from doing so, according to a 2023 National Bureau of Economic Research paper.

Legislative efforts to raise the U.S. retirement age have gained attention, including a 2023 proposal by Sen. Rand Paul to gradually lift the full retirement age to 70. Though struck down, the measure aimed to address funding gaps in Social Security, which faces trust fund depletion.

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Experts warn that such a policy may not work as effectively in the U.S. “Any across-the-board increase in the retirement age would be foolish,” said Alicia Munnell of Boston College, citing life expectancy disparities across income levels.

Andrew Biggs of the American Enterprise Institute added that while raising the age could yield long-term savings, “they’re going to need the money right now.”