How to get Danes to retire later – like Norwegians and Swedes do

Denmark:

The retirement age is between 65.5 and 68, depending on the year of birth. People who have saved up for early retirement can retire three to five years before reaching the official retirement age. In addition to the basic state pension, employee pension schemes are common. Private pension schemes are also available. The Danish pension system offers a range of incentives aimed at keeping people who have reached retirement age in work for longer, including a premium for those postponing their retirement, increased deductions for earnings and tax-free premiums for seniors.

Norway:

The basic state pension is available for people who have turned 62. It is possible to claim only some of the pension, and it can be combined with earnings without being cut. Norwegian law says 18.1 % of earnings should be paid into a personal pension pot (albeit with an earnings ceiling). The size of the pension depends on how much has been paid in during a working life, which again acts as an incentive to stay in work for longer. Nearly everyone has an employee pension scheme in addition to the state pension. To keep seniors in work, people over 69 pay less social security, which means they get to keep a larger proportion of their wages. 

Sweden:

Swedes can retire at 61, and can chose to take out only parts of the pension. 16 % of taxable income must be paid into the public pension scheme (albeit with an earnings ceiling). The size of the pension depends on how long someone has been working and paying into the system. This acts as an incentive to stay in work for longer. Employee pension schemes are common in Sweden, and private pension schemes are available. People over 65 pay less tax, in the hope they will work for longer. Employers also pay less employer’s tax for this group of workers, to help them keep and employ senior workers. 

Source: ”Nordic comparison of labour markets for seniors”, Deloitte for the Danish Ministry of Employment, 2019.