The Economic Councils has published the Autumn Sage report, which revealed that long-term portfolio durability had dipped.

The Economic Councils' economic forecast, however, showed growth in Denmark this year climbed to 3.9 per cent, despite the pandemic.

“The coronavirus crisis was tough and short for Denmark, and all forecasts point to a strong recovery that will continue in 2022. Against this background, we share the Sages' assessment that fiscal policy should be tightened now. This can reduce the risk of overheating both in the labour market, but also in the housing market, which, seems to have reached its peak,” said Forsikring & Pension CEO, Kent Damsgaard.

“Fiscal sustainability is an important management tool for the Danish economy. Sustainability says something about the need for structural reforms. That is why it is important when sage come up with new forecasts for durability.

"Although there is of course great uncertainty about the durability calculation, it is still significant when a third of the durability disappears in today's updated estimates,” he added.

The report also focused on the working ability of elderly Danish citizens. It suggested that amongst 50-70 year olds, there is an ‘unused’ health potential of 3.5 years.

Recently, studies have revealed that Danish citizens are increasingly working into later life.

Research from AkademikerPension found that the average retirement age for the country had increased by two years over the past 12 years.

“The really good news in the sages' report is that our life expectancy and health go hand in hand. This shows that the rising old-age pension age makes sense both through a socio-economic lens and when we look at the health of the individual.

Therefore, it is also really positive that both sides of the Folketing are busy dealing with, for example, set-off, which affects the elderly in jobs,” said Damsgaard.

“We talk a lot about finding ways to increase the labour supply at this time, but there should be far more focus on the Danes' general state of health.

"The healthier we are, the longer we can work - and the better life we have. Therefore, work with health and prevention is also a huge focus area in the Danish insurance and pension industry,” he added.

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