HomeDomestic NewsDanish Analysis Shows Limited Success of 2013 Disability Pension Reform

Danish Analysis Shows Limited Success of 2013 Disability Pension Reform

A new analysis shows that the reform of early retirement pension from 2013 only had minimal success in getting vulnerable young people into employment. The reform, introduced with the aim of increasing youth employment, has not had the desired effect according to an analysis by the Rockwool Foundation. The analysis shows that only a few of the vulnerable young people have found jobs as a result of the reform. Information writes that the reform specifically targeted individuals under 40 years old, who were supposed to avoid early retirement pension and instead be offered a resource course as well as a lower monthly benefit. The goal was to get more of them into jobs, but the analysis concludes that this goal was not achieved. It appears that there were not more vulnerable young people who obtained regular jobs, and only a few received flexible jobs. According to research professor Anders Holm from the Rockwool Foundation, the reason for the limited success of the reform can be found in the health conditions of the young people. “Most individuals in the target group are actually ‘extremely ill’,” says Anders Holm to Information. He adds that there is a small group where it makes sense to try to get them back into the labor market, but for the majority, it will be impossible.

The reform was introduced in 2013 when Mette Frederiksen (S) was Minister of Employment. As a result of the reform, significantly fewer early retirement pensions were granted to individuals under 40 years old in the years that followed. The number decreased from between 4000 and 5000 annually to between 1000 and 2000.

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