Record number of retirees work with pension

In June 2024, 80,971 retirees were working while receiving their state pension, a 19% increase since the previous year, according to data from the Danish Agency for Labour Market and Recruitment (Star). The rise is attributed to more favorable conditions for working pensioners established in 2023, which included abolishing income offsets against the state pension. Under the new rules, single pensioners with a salary of DKK 400,000 avoid a reduction in their pension, resulting in a pension increase of DKK 69,929. Similarly, for a DKK 600,000 salary, the pension gain is DKK 165,180. Danica Pension’s Chief Economist, Mads Moberg, suggests that this increase in working retirees benefits both individuals and the economy by providing businesses with skilled labor and retaining valuable knowledge and experience. This record-high employment figure among pensioners coincides with Prime Minister Mette Frederiksen’s announcement to renegotiate the automatic increase in retirement age, a move met with criticism regarding potential economic impacts.