• Denmark's retirement age will increase to 70 by 2040, the highest in Europe.
• The decision follows a model based on the 2006 welfare agreement linking retirement age to life expectancy.
• The law has sparked significant protests from unions and workers in physically demanding jobs.
• Other European countries may follow Denmark's lead amid growing fiscal pressures.
• Supporters argue the change is necessary for sustainable welfare for future generations.

Denmark's parliament has officially approved legislation to raise the national retirement age to 70 by the year 2040, thus establishing the highest retirement age in Europe. This decision, fostered by the 2006 welfare agreement that ties retirement age to life expectancy, indicates a significant shift in the perception of pension policies and aging populations. The bill received overwhelming support with 81 lawmakers voting in favor and 21 against, applying to individuals born after December 31, 1970, according to aa, businessinsider, and thelocal.

The framework for this pension age increase, which will see it rise to 68 in 2030 and 69 in 2035 before reaching 70, aims to ensure financial sustainability for Denmark's pension system as life expectancy in the country rises. "In 2040, we will raise the retirement age from 69 to 70 years, among other things, to afford proper welfare for future generations," stated Ane Halsboe-Jørgensen, Denmark's Employment Minister businessinsider, thelocal. However, this move has ignited a wave of criticism from trade unions and various sectors of the workforce.

Workers in physically demanding jobs, particularly in construction and agriculture, have expressed fears that they will not be able to work until the age of 70. The largest Danish trade union, 3F, highlighted that three-quarters of their members are skeptical about their ability to work into their 70s businessinsider. Protests have recently taken place in Copenhagen as opposition against the decision grows, revealing a divide between economic policy and workers’ conditions thelocal.

Furthermore, Prime Minister Mette Frederiksen's Social Democratic Party, while advocating the increase, has acknowledged the potential need for a more nuanced approach to the retirement age that factors in shorter lifespans or varying career lengths, especially for those in labor-intensive roles. Frederiksen has hinted that her party does not wish to support further automatic increases after this, indicating the potential for future adjustments to the law aa, thelocal.

The implications of Denmark's decision have raised concerns across Europe, where similar discussions are underway regarding retirement policies. Economists suggest that countries like Germany and the UK may need to adjust their retirement ages as well, potentially following Denmark's path to address the challenges posed by increasing life expectancy and declining birth rates businessinsider. The move is seen as emblematic of a broader trend towards reforming pension systems amid changing demographics.