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Ageing and Employment Policies: Denmark 2015

Working Better with Age

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Given the ageing challenges, there is an increasing pressure in OECD countries to promote longer working lives. This report provides an overview of policy initiatives implemented in Denmark over the past decade. Even if these recent reforms are well in line with the recommendations of the 2005 OECD report Ageing and Employment Policies: Denmark, the focus has been put mainly on the supply side. The aim of this new report is to identify what more could be done to promote longer working lives. As a first step, the government should assess closely the implementation process to ensure that the expected outcomes of the reforms are achieved. More broadly, the strategy should act simultaneously in three areas by: i) strengthening incentives to carry on working; ii) tackling employment barriers on the side of employers; and iii) improving the employability of older workers.

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Making work rewarding for older workers in Denmark

Major reforms have been implemented in Denmark over the past decade to limit early retirement schemes, remove more favourable rules for unemployment benefits for older workers and reduce pathways through disability benefits. The pension age will be increased gradually from 65 to 67 years over the period 2019-22. Subsequently, the retirement age will be linked to changes in life expectancy. Nevertheless, the effective age of exit from the labour market remained relatively stable in the period under review, and social benefits or special labour market schemes are still routes out of regular work for many older people. The purpose of this chapter is to assess the impacts of the implemented reforms, and to identify remaining challenges and further steps that may need to be taken to encourage longer working lives.

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