An increase in retirement age was announced to 74 years

The retirement age in Denmark is increasing again. The government of this country has made a decision that can shock many Poles – in the future the Danes will work up to 74 years of age. Can Poland go the same way? What does this mean for future pensioners?

Denmark raises retirement age – should Poland be afraid?

Denmark is already at the forefront of EU countries in terms of the dimension of work. The average Dane spends as much as 41.3 years of his life at work. The current retirement age is 67 yearsBut it's not the end of change. The government plans to gradually rise this border until it reaches 74 years.

Main justification? Longer average life expectancy and rising expenditure on the pension system. Denmark assumes that the average citizen after retirement will collect it for 14.5 years – and improvement was adapted to this.

How much does Poland spend on retirement? The problem is growing

Pension spending is simply a immense burden on the budget. In OECD countries, they absorb on average 8% of GDPwhat constitutes 18% of all public expenditure.

What about Poland? In 2024, pensions were allocated to PLN 340 billionWhat was 10.5% of GDP. If we add an ageing population and a decreasing number of workers to this, the question arises: Is raising the retirement age in Poland a substance of time?

Danish pension strategy – why works better than Polish?

Denmark can boast 1 of the most effective pension systems in the world. It is based on three pillarswhich guarantee financial stability:

1. State Pension (Folkepension) – guaranteed provision for all citizens. Single gets 13 250 kroner (7,630 PLN) and a individual in a relation – 9,780 kroner (5,630 PLN).
2. Staff Pension Funds (ATP) – compulsory contributions for all Danes over 16, depending on hours worked.
3. Additional savings programmes – contributions are from 12% to 18% of gross remunerationand the replacement rate for average earnings is 86% gross. For low income people – even 123% of salary.

Thanks to this model, Danes can number on advanced benefits, and the state budget is not as charged as in Poland.

How does Poland compare to Denmark?

The biggest difference between Poland and Denmark is mandatory 3rd saving pillar. In Poland, pension savings are voluntary and in Denmark they are compulsory. This allows the country to boast 1 of the highest pension savings rates in the planet – up to 209% of GDPOh, my God!

Poland, despite successive reforms, is inactive struggling with immense problems of financing ZUS, and future pensioners can anticipate hunger benefitsif the strategy is not changed.

Will Poland besides rise the retirement age?

Although the subject of raising the retirement age in Poland is controversial, hard data is inexorable. Polish society is ageing rapidly and the number of workers falls from year to year.

The current retirement age in Poland is 60 years for women and 65 years for men. However, experts have long warned that with the current strategy may run out of money for payments of benefits in the future.

Will Poland follow Denmark and rise the retirement age? Or will it choose another way – e.g. improvement of the contribution strategy and greater incentives to save for the future?

• Denmark raises retirement age to 74, adapting the strategy to life expectancy.
• Poland spends as much as PLN 340 billion per year on pensions – and this amount will grow.
• Danish model is based on mandatory savingsto avoid the crisis.
• Poland may face the request to rise the retirement age – otherwise the strategy may collapse.

Changes to the pension strategy are Inevitable. The question is not whether, but whether. ‘when’.