Social Security's retirement age is under debate after Denmark's surprising move
Should the U.S. raise Social Security's full retirement age?
In a move aimed at ensuring the long-term sustainability of its pension system, Denmark is raising its official retirement age to 70 by 2040. The change, part of the 2006 Welfare Agreement, links the retirement age to life expectancy – meaning as people live longer, they’ll be expected to work longer too.
“This is about securing proper welfare for future generations,” said Denmark’s employment minister, underscoring the need to adjust retirement policy in step with demographic realities.
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Denmark isn’t alone. Several other OECD countries – including Estonia, Italy, the Netherlands, and Sweden – have either implemented or are considering similar reforms. By linking retirement age to longevity, these nations aim to preserve the financial health of their public pension systems without overburdening younger generations.
With Social Security facing its own financial challenges, the question now is: Could it happen here?
Currently, Americans born in 1960 or later reach full retirement age (FRA) at 67. But with Social Security’s trust fund projected to be depleted by 2033 – and beneficiaries facing a potential 21% cut in benefits thereafter – raising the FRA to 70 is once again being floated as a possible solution.
This isn’t the first time the U.S. has considered such a move.
