A new offset method will result in reduced pension for 6000 pensioners. Around 6000 pensioners will on average experience a reduction of 730 Danish kroner in their pension as a result of a new offset method that will come into effect at the turn of the year. The bill, expected to be adopted after the third reading in the Parliament on Thursday, entails a change in how pensioners are offset in their pension. Instead of basing the calculation on the pensioners’ “income from personal work,” as previously planned, the calculation will now be based on their taxable income. Minister of Employment Ane Halsboe-Jørgensen explains that the change is necessary because the original concept has proven difficult to support digitally.
The change will particularly affect pensioners whose spouses or partners receive other social benefits such as early retirement, sickness benefits, or flex jobs. Mads Moberg Reumert, chief economist at Danica Pension, points out that even though the state pension is expected to be increased next year, this group will experience a smaller improvement in their finances than others. The Ministry of Employment assesses that there will be some turnover in the group of affected pensioners, as sickness benefits are typically a temporary benefit.
The change was originally supposed to be implemented from January 1 of this year, but due to problems with integration into the public IT systems, the offsetting has been postponed until 2025. This change will be felt among the affected pensioners, and many may be surprised by the reduced pension they will receive from next year.