Danish-Style Retirement at Age 70: An Overview
On May 22, Denmark marked a significant milestone by becoming the first European nation to vote in favor of raising its retirement age from 67 to 70 by 2040. This decision has prompted reactions from French politicians, with Ségolène Royal expressing her opposition to such a measure in France.
According to an Elabe survey for BFMTV in January, 62% of French citizens prefer a return of the retirement age to 62 years instead of the current 64 years. However, Denmark has taken a step further, pushing its retirement age to 70 by 2040. Currently, Danish workers retire at 67, but two-thirds of them were against extending this age.
The change in Denmark's retirement age aligns with its system based on life expectancy and is set to be reviewed every five years. The transition will affect Danish workers born on or after January 1, 1971. On average, Danes stop working around 65 years old, a model that other European countries, including Italy, are considering adopting.
In response to the Danish move, Ségolène Royal, a former French deputy, was interviewed on May 23. She commented that the social models of the two countries are too different to compare their retirement measures. Royal points out that Denmark better integrates "strenuous professions," unlike France, where there has been a retreat on these criteria. She proposes a "retirement à la carte," recommending it for management positions and the civil service but opposes it for strenuous professions.
Royal also expressed concerns over the capitalization system, suggesting caution to avoid allowing private investment funds into the management of retirements. She emphasized that in case of a financial crisis, when pension funds go bankrupt, people could find themselves without retirement.
It is worth noting that France has been embroiled in controversy over pension reform, with the decision to raise the minimum retirement age from 62 to 64. Despite widespread protests and opposition, President Emmanuel Macron has ruled out holding a referendum on this reform, emphasizing its necessity.
There are no specific details regarding alternative proposals by Ségolène Royal regarding the retirement age in France. However, various political and social discussions about pension reform have taken place, including adjustments to contribution periods, incentives for later retirement, and possible improvements to the pension system.
- Ségolène Royal, in response to Denmark's increase in retirement age, has proposed a "retirement à la carte" policy, advocating for management positions and the civil service but opposing it for strenuous professions, citing the need to consider the integration of such jobs.
- Expressing concerns about the capitalization system, Royal has urged caution in allowing private investment funds to manage retirement, fearing that a financial crisis could leave individuals without retirement if pension funds go bankrupt.
