Experiences with Occupational Pensions in Denmark

Svend E. Hougaard Jensen, Torben Möger Pedersen, Tove Birgitte Foxman

Research output: Contribution to journalJournal articleResearch


This paper focuses on the development of the funded, occupational pension (OP) system in Denmark. Launched in 1987, as a grand agreement between social partners backed by the government, and as part of the collective wage bargaining process, the Danish OP system differs from the set-up in most other countries, where OP schemes typically have been introduced as part of the legislative process. The OP schemes, being a major component of the overall Danish pension system, have attracted a lot of international attention in recent years and play a key role behind the system’s success with respect to achieving satisfactory coverage, providing high replacement rates and not least, for keeping fiscal policy on a sustainable path. Finally, the paper discusses a number of future challenges, mainly related to the interaction between private and public pensions in a welfare state.
Original languageEnglish
JournalVierteljahrshefte zur Wirtschaftsforschung
Issue number1
Pages (from-to)11-30
Number of pages20
Publication statusPublished - 2019


  • Occupational pension
  • Pension taxation
  • Fiscal sustainability
  • Saving
  • Retirement

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