The Danish pension system is the “crown jewel" in the Danish economy and must be safeguarded, according to a new report from Insurance and Pension Denmark (I&P Denmark).

I&P Denmark has called for the new Danish Parliament, formed following the March 2026 snap election, to safeguard the pension system and strengthen it further.

The association welcomed the fact that during the election campaign, pensions were a frequent topic, with issues such as the state pension age and the structure of early retirement schemes taking prominence.

I&P Denmark CEO, Kent Damsgaard, said: “In Denmark, we have created one of the world’s most robust pension systems, which provides Danes with a high degree of financial security and has, at the same time, become a crown jewel of the Danish economy.

“We must safeguard this. That is why we are now publishing a report that describes our pension system and the key balances and mechanisms within the model.”

According to Damsgaard, there is a growing demand for a smoother transition from working life to retirement.

Indeed, the report found that two out of three Danes would like the option to gradually reduce their working hours during their final years in the labour market, with the aim of keeping both the energy and motivation to stay in work longer.

I&P Denmark argued that the incoming Danish government, which is yet to be finalised since the election, has a “clear opportunity” to introduce improvements that could benefit many.

He also pointed out that higher tax relief on pension contributions could serve as an additional incentive to save and support Danes’ own efforts to ensure financial stability in retirement.

However, he referenced a proposal made by the Social Democrats in the election campaign to reduce pension tax relief for high-income earners.

“I would strongly caution against going down that path. Instead, we should actually make it even more attractive to save for retirement, particularly for seniors before reaching the state pension age.

"In the past, the Pension Commission proposed increasing the pension tax deduction for the group of Danes closest to the state pension age,” he said.

He continued: “What matters most to us is that any changes to our pension system are made with due care. It is important to focus on the balance between the public and private sectors of the pension system and the division of responsibilities between the social partners, the Folketing and the pension companies.

“This also requires a sound regulatory framework for pension companies, so that they can continue to ensure the best returns on Danes’ pension savings in the future.”

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