Denmark is set to take the lead globally when it comes to the official retirement age, after passing new legislation that will raise it to 70 by 2040.

The change is part of a long-term strategy to keep the country’s pension system sustainable, as people live longer, healthier lives. Since 2006, Denmark has tied its retirement age to life expectancy, adjusting it every five years. Currently set at 67, the age will increase to 68 in 2030, 69 in 2035, and 70 in 2040 for anyone born after 31 December 1970.

While this may sound steep, it reflects a broader global trend. Many developed nations are grappling with the challenge of financing retirement programs designed decades ago, when people didn’t live as long post-retirement. Longer lives are a gift to individuals and families – but they also strain public finances.

Denmark’s approach is to gradually increase the retirement age to match improvements in longevity, helping to keep its pension system solvent without shifting a heavier burden onto younger generations.

The country is also a leader in supporting older adults to remain in their homes, with around 80% of aged care services delivered in-home. This focus on ageing in place aligns with the growing preference among seniors to maintain independence for as long as possible.

What about Australia and New Zealand?

Unlike Denmark, Australia and New Zealand have no official retirement age. However, eligibility for government pensions is age-based: in Australia, you must be at least 67 to receive the Age Pension, while in New Zealand it’s 65.

How does the rest of Europe compare?

Retirement ages across Europe vary, but the trend is clear: most countries are raising the bar to keep up with life expectancy.

  • Sweden: The earliest age to claim a pension is 63.
  • Italy: The standard pension age is 67, but like Denmark, this is tied to life expectancy and could rise again in 2026.
  • UK: People born after 5 April 1960 will see their pension age rise gradually beyond 66.

As life expectancy continues to climb and retirement periods stretch longer, countries around the world are being forced to rethink what “retirement age” really means – and how to balance economic sustainability with dignity in later life.