Denmark Agrees to Let Banks Fund Early Retirement for Workers

The Danish government’s plan to fund early retirement for some workers by introducing an extra tax on the financial industry has gained enough support among opposition parties to be turned into law next year.

After negotiations into the early hours of Saturday, the Danish Social Democrat-led government announced this morning that it had reached an agreement with opposition parties to support the proposal. This means there is now a majority in the parliament to add 2 billion kroner ($318 million) worth of additional annual taxes on the financial sector to strengthen pension rights.

“The sector made billions during the last couple of years, and an extra contribution is therefore entirely in its place” Morten Bodskov, minister of taxation, said in a statement. “Those who have toiled and toiled in a long working life are now entitled to a dignified retirement.”

As many as 41,000 Danes will be eligible for one to three years of early retirement from 2022, as long as the proposal is backed by a vote in parliament next month. About 24,000 of them are expected to accept the offer.

Denmark’s financial industry has strongly opposed the plan saying it will only lead to increased fees for its customers. It welcomed that a tax on stock gains was no longer part of it, according to a statement.

Bloomberg

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