Today’s news / Increase In early Retirement Pensions Amongst Young Danes
Mads Moberg Reumert, chief economist at Danica Pension, is concerned about how many young people are receiving early retirement pension. (Archive photo). Photo: Mathias Eis/Ritzau Scanpix

Increase In early Retirement Pensions Amongst Young Danes

A significant increase in young Danes aged 20 to 34 receiving early retirement pensions has been observed, reaching 22,925 individuals, a 38% rise over the past five years. Mads Moberg Reumert, chief economist at Danica Pension, expresses concern about the high amount of young people, early in their working life, being granted this pension. Across all age groups, there are 244,405 early pensioners, an increase of almost 40,000 in five years, still lower than the 261,000 twenty years ago. Once on early pension, returning to the labor market is unlikely. Of particular concern is the surge among younger women under 40, with a 47% increase in annual new early pension recipients since 2004, says Reumert. Furthermore, the proportion of early pensions awarded due to mental disorders has risen by over 10% in the past five years.