Overview

• Denmark’s parliament enacted a law this month to phase in a pension age of 70 by 2040 for those born after 1970.
• Germany will complete its increase to 67 by 2031 and maintain that threshold without further hikes under the current coalition government.
• German retirees now live on average over two decades after claiming benefits, intensifying funding shortfalls in the pay-as-you-go system.
• Economists recommend tying the statutory pension age to life expectancy and highlight models in the Netherlands, Sweden and Finland that adjust entitlement accordingly.
• The coalition is exploring an “Aktiv-Rente” scheme allowing pensioners to earn up to €2,000 monthly tax-free to encourage longer workforce participation.