Denmark raises retirement age to 70 — the highest in Europe
Parliamentarians passed a bill mandating the rise on Thursday, with 81 votes in favor and 21 against.
The new law will apply to people born after December 31, 1970. The current retirement age is 67 on average, but it can go up to 69 for those born on January 1, 1967, or later.
The rise is needed in order to be able to 'afford proper welfare for future generations,' employment minister Ane Halsboe-Jørgensen said in a press release Thursday.
Denmark has a population of almost 6 million people, with around 713,000 between the ages of 60 and 69, and around 580,000 aged between 70 and 79, according to the official Statistics Denmark website.
'Developments in recent years clearly show a marked increase in the number of Danes who continue to work until — and beyond — the state pension age,' F&P, the Danish trade association for insurance companies and pension funds, said in a press release Friday.
Approximately 80,000 people over the state pension age are currently in work in Denmark, according to F&P, which put the increase down to good economic conditions, employers being more flexible, better financial incentives and a greater desire to continue working.
'For many Danes, the idea of the state pension age increasing to 70 by 2040 may seem overwhelming,' Jan V. Hansen, the director of pensions at the association, said in the release. 'However, the figures clearly demonstrate that a growing number of Danes are remaining in employment for longer periods.'
'The good news is that many Danes not only have the health but also the desire to continue working — even after reaching the state pension age,' he continued.
Denmark's socialist Red-Green Alliance, however, described the vote by 'the government and the right wing' in a post on Facebook as 'unreasonably high,' and condemned the change in light of the 'great' pension conditions enjoyed by many ministers who can retire at age 60.
'It is incomprehensible. It cannot be explained. And it cannot be defended,' Pelle Dragsted, a member of parliament for the party, said in another Facebook post, noting that teachers, scaffolders and many others in physically demanding jobs have said they cannot keep going for that long.
Denmark is the first European country to set its national retirement age beyond the 60s. The move will make it one of the highest in the world, on par with Libya.
In France in March 2023, more than a million people took to the streets nationwide to protest a rise in the retirement age to 64 — six years below the new Danish retirement age.
In September, the Chinese government passed legislation that would see the retirement age for men raised from 60 to 63, and from 50 and 55 for women, depending on their occupation, to 55 and 58, respectively.
The state pension age in the UK is set to rise to 67 between 2026 and 2028, although a review could see it revised to 68.
While the retirement age in the United States is similar to the UK's, some Social Security benefits are available from age 62.
Better health in old age, increased life expectancy and remote working are allowing more Americans to work into old age. However, research shows that it is often a lack of money that keeps them working longer.
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Yahoo
31 minutes ago
- Yahoo
US-EU trade deal wards off further escalation but will raise costs for companies, consumers
FRANKFURT, Germany (AP) — President Donald Trump and European Commission President Ursula von der Leyen have announced a sweeping trade deal that imposes 15% tariffs on most European goods, warding off Trump's threat of a 30% rate if no deal had been reached by Aug. 1. The tariffs, or import taxes, paid when Americans buy European products could raise prices for U.S. consumers and dent profits for European companies and their partners who bring goods into the country. Here are some things to know about the trade deal between the United States and the European Union: What's in the agreement? Trump and von der Leyen's announcement, made during Trump's visit to one of his golf courses in Scotland, leaves many details to be filled in. The headline figure is a 15% tariff rate on 'the vast majority' of European goods brought into the U.S., including cars, computer chips and pharmaceuticals. It's lower than the 20% Trump initially proposed, and lower than his threats of 50% and then 30%. 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The 10% baseline applied while the deal was negotiated was already sufficiently high to make the European Union's executive commission cut its growth forecast for this year from 1.3% to 0.9%. Von der Leyen said the 15% rate was 'the best we could do' and credited the deal with maintaining access to the U.S. market and providing 'stability and predictability for companies on both sides.' What is some of the reaction to the deal? German Chancellor Friedrich Merz welcomed the deal which avoided 'an unnecessary escalation in transatlantic trade relations" and said that 'we were able to preserve our core interests,' while adding that 'I would have very much wished for further relief in transatlantic trade.' The Federation of German Industries was blunter. "Even a 15% tariff rate will have immense negative effects on export-oriented German industry," said Wolfgang Niedermark, a member of the federation's leadership. While the rate is lower than threatened, "the big caveat to today's deal is that there is nothing on paper, yet," said Carsten Brzeski, global chief of macro at ING bank. 'With this disclaimer in mind and at face value, today's agreement would clearly bring an end to the uncertainty of recent months. An escalation of the US-EU trade tensions would have been a severe risk for the global economy," Brzeski said. 'This risk seems to have been avoided.' What about car companies? Asked if European carmakers could still sell cars at 15%, von der Leyen said the rate was much lower than the current 27.5%. That has been the rate under Trump's 25% tariff on cars from all countries, plus the preexisting U.S. car tariff of 2.5%. The impact is likely to be substantial on some companies, given that automaker Volkswagen said it suffered a 1.3 billion euro ($1.5 billion) hit to profit in the first half of the year from the higher tariffs. 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The Hill
32 minutes ago
- The Hill
US-EU trade deal wards off further escalation but will raise costs for companies, consumers
FRANKFURT, Germany (AP) — President Donald Trump and European Commission President Ursula von der Leyen have announced a sweeping trade deal that imposes 15% tariffs on most European goods, warding off Trump's threat of a 30% rate if no deal had been reached by Aug. 1. The tariffs, or import taxes, paid when Americans buy European products could raise prices for U.S. consumers and dent profits for European companies and their partners who bring goods into the country. Here are some things to know about the trade deal between the United States and the European Union: What's in the agreement? Trump and von der Leyen's announcement, made during Trump's visit to one of his golf courses in Scotland, leaves many details to be filled in. The headline figure is a 15% tariff rate on 'the vast majority' of European goods brought into the U.S., including cars, computer chips and pharmaceuticals. It's lower than the 20% Trump initially proposed, and lower than his threats of 50% and then 30%. Von der Leyen said the two sides agreed on zero tariffs on both sides for a range of 'strategic' goods: Aircraft and aircraft parts, certain chemicals, semiconductor equipment, certain agricultural products, and some natural resources and critical raw materials. Specifics were lacking. She said the two sides 'would keep working' to add more products to the list. Additionally, the EU side would purchase what Trump said was $750 billion (638 billion euros) worth of natural gas, oil and nuclear fuel to replace Russian energy supplies, and Europeans would invest an additional $600 billion (511 billion euros) in the U.S. What's not in the deal? Trump said the 50% U.S. tariff on imported steel would remain; von der Leyen said the two sides agreed to further negotiations to fight a global steel glut, reduce tariffs and establish import quotas — that is, set amounts that can be imported, often at a lower rate. Trump said pharmaceuticals were not included in the deal. 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While the rate is lower than threatened, 'the big caveat to today's deal is that there is nothing on paper, yet,' said Carsten Brzeski, global chief of macro at ING bank. 'With this disclaimer in mind and at face value, today's agreement would clearly bring an end to the uncertainty of recent months. An escalation of the US-EU trade tensions would have been a severe risk for the global economy,' Brzeski said. 'This risk seems to have been avoided.' What about car companies? Asked if European carmakers could still sell cars at 15%, von der Leyen said the rate was much lower than the current 27.5%. That has been the rate under Trump's 25% tariff on cars from all countries, plus the preexisting U.S. car tariff of 2.5%. The impact is likely to be substantial on some companies, given that automaker Volkswagen said it suffered a 1.3 billion euro ($1.5 billion) hit to profit in the first half of the year from the higher tariffs. 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Trump has complained about the EU's 198 billion-euro trade surplus in goods, which shows Americans buy more from European businesses than the other way around, and has said the European market is not open enough for U.S.-made cars. However, American companies fill some of the trade gap by outselling the EU when it comes to services such as cloud computing, travel bookings, and legal and financial services. And some 30% of European imports are from American-owned companies, according to the European Central Bank.


Axios
an hour ago
- Axios
EU trade deal with Trump helps Europe ditch Russian fuels
The new trade deal that President Trump unveiled with the European Union includes a European pledge to buy $750 billion worth of U.S. energy. Why it matters: European Commission President Ursula von der Leyen said it will help the bloc further wean itself off Russian gas. The $750 billion is spread across three years, she told reporters in Scotland on Sunday. The big picture:"We still have too much Russian LNG that is coming through the back door ... to our European Union," von der Leyen said, and also cited some continued oil shipments. "We want to absolutely get rid of Russian fossil fuels, and therefore it is much welcome to purchase the more affordable and better LNG from the United States," she said. EU pipeline imports of gas from Russia, once its dominant supplier, have fallen greatly. But imports of Russian LNG remain substantial. What we're watching: EU members' purchases of U.S. LNG and oil have risen sharply since Russia invaded Ukraine. And European energy companies have already been signing deals for future LNG volumes from U.S. projects that are planned or already under construction. The bottom line: Details are lacking. The big question is how much this increases purchases that would have occurred anyway. ClearView Energy Partners, in a note, said that even if the $250B annually includes existing U.S. energy exports to the EU of roughly $78B per year, it would still be a big jump. The total "would far outstrip" U.S. energy purchases in Trump's "phase one" deal with China, ClearView said.