Denmark makes it easier for worn-out workers to retire early

Denmark’s government is introducing new regulations for senior pensions, allowing worn-out workers to retire from the labour market six years before others and work flexible hours.

The new pension agreement will be based on individual assessments to allow those who need it to start withdrawing pensions early, the government said in a statement. It also means that rules for flexible jobs are relaxed to allow for reduced working hours if abilities are reduced.

The measure will also give more favourable economic conditions if they decide to work while withdrawing state pensions.

According to the government, the new agreement is based on allowing worn-out workers to withdraw senior pensions early, making it easier for seniors to take flexible positions at their current workplace and allowing seniors to earn more when working alongside receiving a state pension.

In addition, DKK 100m will be used annually to prevent workers from becoming worn out.

Employment Minister Troels Lund Poulsen commented: "We have today entered into a vital agreement which takes care of the people who have been worn down throughout their working life. It has been important for us to find the right solution for seniors who are worn out. They must have the opportunity to withdraw earlier from the labour market.”

In order to withdraw early pensions, the worker must have six years or less until the retirement age, worked for 20-25 years and have an ability to work 15 hours or less a week.

The workers must also be able to stay within their sectors, meaning that, a bricklayer is not able to work more than about two days a week as a bricklayer, will not be referred to a job in a shop.

Furthermore, a commission is being set up to review the Danish retirement age after 2040, when it is expected to be age 70, and look at whether life-time indexing can be eased and the retirement age can increase slower than life expectancy.

The new regulations will enter into force on 1 January 2020.

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