DENMARK - The Danish Prime Minister Anders Fogh Rasmussen (pictured) has announced that the government will increase the current retirement age in order to deal with the country's aging population and growing life expectancy.
The retirement age in Denmark is currently 65 years, but Rasmussen said the system would be changed gradually.
We will have to make a gradual postponement of the point in time at which we normally retire from active employment, the PM said in his annual New Year's speech.
Rasmussen said Denmark’s aging population and growing life expectancy were the main reasons behind the reform.
In future, we will have a larger number of elderly people, and we will have fewer people in the labour market. At the same time we live longer, and this is, of course, a positive thing.
“However, this also brings some challenges. Because, at the same time as our life expectancy grows, we spend less time on the labour market.
Rasmussen said the current development, where fewer people payed taxes, was unsustainable.
The PM added that the changes to the state pension system would be implemented gradually and said those who were “worn down” would still have the opportunity to retire early.
With our current healthy economy, we will be able to implement the necessary changes gradually over an extended number of years, so that the individual will be provided with ample time to make the necessary adjustments to the new situation. Of course we must maintain the possibility for those who are worn down to retire early.
By Andreas Walstad
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
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Respondents say they should only be required in certain situations as the system is not broken.