More pensioners are returning to the labour market

A growing number of pensioners are choosing to re-enter the labour market after having originally retired. In particular, people who have been on early retirement pay or early pension are starting to work again when they reach the state pension age.

According to a new analysis from the industry association F&P, 11,600 retired people returned to the labour market in 2024. That is 1,360 more than the year before, corresponding to an increase of 13 per cent.

-“For a number of years, we have seen that more and more pensioners regret having stopped working. It is especially state pensioners who, after a period as pensioners without work, choose to start working again. It is incredibly positive and an important contribution to the historically high employment we have in Denmark that pensioners who still have the desire and the health return to work,” says Andreas Østergaard Hartington, Deputy Director at F&P.

Today, more than 100,000 state pensioners are in employment. Among these, people who previously received early retirement pay or early pension constitute a particularly interesting group. As many as 14 per cent of them choose to work when they reach the state pension age.

-“It is worth noting that people who have been on early retirement pay or early pension before the state pension age are increasingly starting to work when they become state pensioners. This is probably connected to the fact that while working as a state pensioner does not trigger a reduction in benefits, there is a risk of benefit reductions if one works while receiving early retirement pay or early pension. This means receiving less in public benefits if one works. This likely discourages many from working at the same time as they receive early retirement pay or early pension,” says Andreas Østergaard Hartington.