Denmark is set to have the highest retirement age in Europe, after lawmakers voted to raise it to 70.
Parliamentarians passed a bill mandating the rise on Thursday, with 81 votes in favor and 21 against.
The new law will apply to people born after December 31, 1970. The current retirement age is 67 on average, but it can go up to 69 for those born on January 1, 1967, or later.
The rise is needed in order to be able to “afford proper welfare for future generations,” employment minister Ane Halsboe-Jørgensen said in a press release Thursday.
And you’re saying this about that bastion of right-wing economic policy… Denmark? Tax-to-GDP ratio in the mid 40s, second highest amongst OECD countries?
No-one here has said that increasing the pension age is the only solution. Indeed, on its own, it probably doesn’t solve the problem. But it’s one part of a plan. Other parts include addressing the other side of the equation - young people, so encouraging immigration and increasing birth rates (but Danish net immigration is already about 1% of its population per year which isn’t low, high levels of immigration are unpopular, and increasing birth rates is difficult and makes the problem worse for at least 18 years). Tax policy is another aspect of it, but you have to realise that having an older population doesn’t mean that working population is willing or able to bear higher tax rates (even if you try to target them at the rich) That is to say, if you have a high average tax rate already, as you do in Denmark, increasing it further to pay for an aging population is likely to start having adverse effects, and it doesn’t matter why you’re increasing taxation.
i don’t know what to tell you then, other than people might not be more excited to have kids knowing that they’ll be working until they’re 70. unless their plan is to move the entire family out of the country. which also makes the problem worse
I don’t think this will affect people’s desire to have children at all (Denmark’s strong social security system has a much stronger, and positive, effect on that).
I am of child-having age and my decision is based around what my life would be like for the next 18 or so years, not would it would be like at retirement. If I were to think about that, possibly having someone around to help me out and let me retire earlier would probably be a very tiny nudge in favour of having children.
lol “hey can you give grandpa a ride to work? his back’s gone out again and he’s used up all his pto”