The Danish government wants to raise the early retirement benefit known as the Arne pension by 3,095 kroner a month, with the change taking effect on January 1, 2027.
DR reports that the plan was presented by Employment Minister Ane Halsboe-Jorgensen of the Social Democrats. The expansion would take effect at the turn of the year, and it also keeps the age threshold at 64.
Under the proposal, the monthly payment rises from 15,650 kroner to 18,745 kroner. The age limit of 64 is maintained for people born between 1963 and 1965. A planned increase of that threshold to 65 from January 1, 2027, is therefore canceled.
The affected cohorts would be able to receive early retirement for up to four years. That is one year longer than under the current rules, according to DR. Some people who do not qualify for the scheme today would also be able to retire a year earlier.
The Arne pension is granted on the basis of the number of years a person has spent in the labor market. It differs from the senior pension, which targets people who are worn down by work. The scheme is named after brewery worker Arne Juhl, who marked his first day on the pension in Haderslev on May 1, 2024.
More expected to leave the labor market
The government expects around 7,400 more people to choose early retirement in 2030 as a result of the expansion. Halsboe-Jorgensen said the changes are meant to give greater security to people with long working lives behind them.
Per DR, the minister argued that there is fairness in giving that group extra security, protection and rights. She acknowledged that companies are short of labor. Other measures can be used to ensure businesses get the workers they need, she said.
The government also wants to make it more financially attractive to work alongside the Arne pension. Today the benefit is reduced if the recipient earns above a certain amount. Those rules would be eased, but the specific changes have not yet been presented.
Halsboe-Jorgensen described the current rules as fairly strict, saying recipients are effectively barred from working on the side. She said she wants to loosen them, pointing to people who still have the energy for a few hours of work.
The government will introduce a bill in the coming session of the Folketing. The stated plan is for the changes to apply from January 1, 2027.
The Arne pension was introduced as a right to early retirement for people with many years in the labor market. DR notes that the senior pension remains a separate scheme aimed at those who are worn out.
