What's a good age to retire? For Europe, it's heading towards 70

Many people the world over are looking forward to retirement.

It’s a time of life where you can kick back and enjoy yourself. Maybe take up a hobby like painting or travelling the world. Or spend more time with your friends and family.

In India, 60 is the retirement age for government employees and most private firms. But not in Europe.

The continent seems to be heading towards 70 as the age of retirement. This comes after news that Italy is considering freezing its retirement age at 67. Denmark earlier this year announced it would raise its retirement age to 70.

Let’s take a closer look.

Italy weighs freezing its retirement age at 67

Italy is considering freezing its retirement age at 67 — the same age when the pension kicks in. Under Italian law, increased life expectancy will result in the retirement age increasing to 67 years and three months by 2027. By 2040, the retirement age in Italy could rise to 68 years and one month.

Though Italians are supposed to retire at 67, many actually do so earlier. Last year, the average retirement age was around 64.8 years. That number was 64.2 in 2023.

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However, labour unions and political parties have urged the government to freeze the retirement age at 67. This is because they worry that those working in difficult manual labour jobs will have a tougher time of it.

However, many are wary.

Italy’s Finance Minister Giancarlo Giorgetti has said this could be done – but only for two years. Others are warning that freezing the retirement age despite life expectancy increasing would require political compromise, legal changes and even fiscal compromises. They warn that doing so could hurt the country’s credibility when it comes to rating agencies.

Denmark to raise retirement age to 70

Italy isn’t alone.

Earlier this year, Denmark announced it would be raising its retirement age to 70 – the highest in Europe – by the year 2040. Denmark too has linked the retirement age to the life expectancy of its citizens.

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The country since 2006 has revised its retirement age upwards every five years. The retirement age is set to rise to 68 in 2030, 69 in 2035 and 70 in 2040. The new retirement age will apply to those born after 31 December 1970. The vote was passed by the country’s parliament 81 to 20.

However, even Denmark’s Prime Minister Mette Frederiksen noted that this isn’t sustainable.

“We no longer believe that the retirement age should be increased automatically,” Frederiksen told BBC. “ You can't just keep saying that people have to work a year longer."

Jesper Ettrup Rasmussen, the chairman of a Danish trade union confederation, called the decision “completely unfair”.
“Denmark has a healthy economy and yet the EU’s highest retirement age,” he said. “A higher retirement age means that [people will] lose the right to a dignified senior life.”

Others aren’t as concerned.

Jesper Rangvid, professor of finance at the Copenhagen Business School and co-director of its Pension Research Centre, told CNBC, “That means simply that younger people today will have to work longer before they can go on retirement.”

“There’s nothing that prevents you from retiring earlier if you have the funds and the means to do so,” Rangvid added. He said Denmark raising the retirement age is a message to the public. “It sends a signal that this is what the politicians would like, that you should work longer,” Rangvid added.

Other European nations

Norway in 2025 changed its pension rules to standardise retirement, which was previously at age 67. Now, those born in 1964 or after must work longer – an extra month per year. Only those in physically demanding jobs, known as ‘Sliterordningen’, can retire under the age of 65.

Iceland, like Norway, also has a retirement age of 67. However, much of the labour force continues to work well after retirement age.

The retirement age in the Netherlands is 66.6, while the UK and Ireland both have a retirement age of 66. Germany has a retirement age of 65.8, while Portugal’s retirement kicks in at 65.6.

France, meanwhile, increased the retirement age to 64 amid massive protests and riots. Prime Minister Emmanuel Macron had to force the highly unpopular legislation through parliament without a vote.

What the data show

According to data from the Organisation for Economic Co-operation and Development (OECD), the retirement age for men in Europe is between 62 and 67 while the range for women is between 60 and 67. Men in Europe on average retire at around 64.7 years, while women do so at 63.8 years.

Nordic nations such as Denmark, Norway, Iceland have among the highest retirement ages for men and women.

Greece, Luxembourg, Slovenia have lower retirement ages for both men and women (62), while Austria and Poland have some of the lowest retirement ages for women (60). By 2060, the average retirement age in Europe will be close to 67 years.

By that year, Denmark will likely have the highest retirement age at 74. By comparison, Italy and Estonia will be at 71, while Netherlands, Sweden, Cyprus will be around age 70. Finland and Slovakia will be around 69, Portugal at 68, UK, Germany, Belgium, Norway, Iceland around 67, and Ireland and Greece between 65 and 66.

In short? Buckle up, kids in Europe. It’s gonna be a while before you put your feet up.

With inputs from agencies