Denmark passed legislation in May 2025 to gradually raise its retirement age to 70 by 2040. The law applies to residents born after December 31, 1970, increasing the age to 68 in 2030, 69 in 2035, and 70 in 2040 to ensure long-term economic sustainability. This move makes Denmark's retirement age one of the highest in the world.
Denmark just raised the retirement age to 70. Should Australia take notes? Denmark is set to have the highest retirement age among Western nations – 70 by 2040. It's a clear-eyed response to rising life expectancy and budget pressures, linking pension eligibility to how long people are living.
Because of the huge discrepancy in life expectancy, commentators have proposed increasing the full retirement age only for those who could work longer. That is, only the top 20 percent of each cohort would work until 70, and the increase would be scaled so that low earners would retain the current retirement age of 67.
Denmark will soon be tied with Libya as having the highest official retirement age, at 70 years old. Other countries with high retirement ages include Australia, Greece, Iceland, Israel, Italy, the Netherlands, Spain, and the United States.
Raising the Retirement Age
The full retirement age (FRA) has been steadily rising since legislation was passed by Congress in 1983, a move made to help shore up the Social Security trust funds that pay benefits to more than 70 million Americans in 2025.
Roughly 7% to 9% of American households have $500,000 or more in retirement savings, though figures vary slightly by source, with data from late 2025 suggesting around 7.2% and older 2022 data indicating about 9%, showing it's a significant milestone achieved by less than one in ten families, despite higher averages driven by wealthy individuals.
Which Countries Have the Most Sustainable Pension Systems? Iceland, Denmark, and the Netherlands have the most financially sustainable pension systems due to well-balanced contribution rates and participation.
Residence Permit to Retire in Denmark
Denmark does not offer a dedicated retirement visa, so you'll need to qualify under another category, typically as a student, worker or partner of a Danish citizen. For most American retirees, the partner visa is the most accessible option.
As of 2017, as reported by the Organisation for Economic Co-operation and Development (OECD), only three European member states (UK, Denmark and Poland) and four OECD countries (Canada, Australia, New Zealand, United States) had laws banning mandatory retirement.
2. Full retirement age (FRA) goes up in 2026. In November 2025, the full retirement age (FRA) — the age at which individuals qualify to receive 100% of their Social Security benefits — increased to 66 years and 10 months for those born in 1959.
If you are one of them, here are four international destinations you may consider.
If you don't take Social Security at age 70, your benefit stops growing, so you miss out on maximizing your monthly payment and potentially leaving money on the table, though you can claim retroactively for up to six months past your 70th birthday; however, waiting longer than six months means forfeiting those missed benefits permanently. The main consequence is losing out on the highest possible monthly benefit and potentially a larger survivor benefit for a spouse, as delayed retirement credits cease at age 70.
The extra $144 added to Social Security usually comes from the Medicare Part B Giveback benefit, offered by some Medicare Advantage (Part C) plans, which pays back some or all your Part B premium, showing up as extra money in your check if it's deducted from your Social Security. To qualify, you need Original Medicare (Parts A & B), pay your own Part B premium, live in a plan's service area, and enroll in a specific Medicare Advantage plan that offers this "rebate," with the amount varying by plan and location.
For a 70-year-old, average retirement savings vary significantly by source, but generally fall between $250,000 and over $600,000 (mean/average), while the median (half have less) is much lower, around $100,000 to $200,000, highlighting a wide gap due to high earners skewing averages. Key figures show the mean for ages 65-74 around $609,000, but the median for that group is closer to $200,000.
The Congressional Budget Office (CBO) released a report showing that raising the Social Security retirement age to 69—as House Republicans have proposed—would slash benefits for hardworking retirees.
What is the maximum Social Security retirement benefit payable?