Denmark approved a law in May 2025 establishing Europe’s highest minimum retirement age at 70, effective from 2040. The measure targets individuals born after December 31, 1970, aligning with rising life expectancy and aiming to ensure pension system sustainability. In Latin America, Uruguay advanced its reforms, setting the minimum age at 65 for those born from 1977, backed by 61% of voters in a 2024 referendum. Both nations reflect a global trend of adjusting retirement systems.
Currently, Denmark’s minimum retirement age is 67, set to rise to 68 in 2030 and 69 in 2035. The decision to reach 70 was passed with 81 votes in favor and 21 against in Parliament, despite union protests in Copenhagen. In Uruguay, the 2022 reform replaced the previous 60-year limit, implementing a gradual transition. These moves contrast with more flexible systems in countries like Bolivia and Venezuela, where women can retire at 50 and 55, respectively.
The Economic Commission for Latin America and the Caribbean (ECLAC) highlights the precariousness of pensions in parts of the region, with amounts often insufficient for basic needs. In Venezuela, pensions equate to about $1 monthly. Meanwhile, countries like Brazil and Chile maintain higher minimum ages, at 62 for women and 65 for men.
Adjustments reflect demographic and economic pressures:
- Rising life expectancy demands stronger pension systems;
- Aging populations reduce the proportion of active workers;
- Fiscal deficits drive reforms to curb public spending;
- Unions and manual workers question the feasibility of high retirement ages.
Life expectancy shapes reforms
Linking retirement age to life expectancy, adopted by Denmark since 2006, is a model inspiring other nations. The five-year review allows adjustments based on demographic data, ensuring the system keeps pace with longevity. In 2025, Denmark’s life expectancy is 81.3 years, among Europe’s highest, justifying the rise to 70.
In Uruguay, a life expectancy of 77.9 years drove the 2022 reform. The shift to 65 was planned to avoid abrupt changes, with specific rules for workers nearing retirement. The 2024 referendum, upholding the new age, showed public support but revealed divisions among unions and economic sectors.
In Latin America, countries with lower life expectancy, like Bolivia (71.5 years), maintain lower minimum ages. ECLAC warns that pension system sustainability depends not only on age but also on coverage and pension amounts, which often fail to keep up with inflation.
Pension systems under pressure
Population aging is a shared challenge for Denmark and Latin America. In Denmark, 20% of the population is over 65 in 2025, while Uruguay stands at 15%. In Brazil, the 10% rate is projected to double by 2050, according to IBGE, pressuring the National Social Security Institute (INSS).
Denmark’s system is funded by mandatory contributions and taxes, with pensions supplemented by private funds. The hybrid model ensures generous benefits, averaging €2,500 monthly. In Uruguay, the system is mostly public, but the shift to 65 aims to reduce the pension deficit, consuming 8% of GDP.
ECLAC notes that only 50% of Latin American workers contribute to pension systems due to high informality. Countries like Bolivia and Paraguay struggle to expand coverage, while Chile and Uruguay advance with models combining public and private contributions.
Life expectancy shapes reforms
Linking retirement age to life expectancy, adopted by Denmark since 2006, is a model inspiring other nations. The five-year review allows adjustments based on demographic data, ensuring the system keeps pace with longevity. In 2025, Denmark’s life expectancy is 81.3 years, among Europe’s highest, justifying the rise to 70.
In Uruguay, a life expectancy of 77.9 years drove the 2022 reform. The shift to 65 was planned to avoid abrupt changes, with specific rules for workers nearing retirement. The 2024 referendum, upholding the new age, showed public support but revealed divisions among unions and economic sectors.
In Latin America, countries with lower life expectancy, like Bolivia (71.5 years), maintain lower minimum ages. ECLAC warns that pension system sustainability depends not only on age but also on coverage and pension amounts, which often fail to keep up with inflation.
Pension systems under pressure
Population aging is a shared challenge for Denmark and Latin America. In Denmark, 20% of the population is over 65 in 2025, while Uruguay stands at 15%. In Brazil, the 10% rate is projected to double by 2050, according to IBGE, pressuring the National Social Security Institute (INSS).
Denmark’s system is funded by mandatory contributions and taxes, with pensions supplemented by private funds. The hybrid model ensures generous benefits, averaging €2,500 monthly. In Uruguay, the system is mostly public, but the shift to 65 aims to reduce the pension deficit, consuming 8% of GDP.
ECLAC notes that only 50% of Latin American workers contribute to pension systems due to high informality. Countries like Bolivia and Paraguay struggle to expand coverage, while Chile and Uruguay advance with models combining public and private contributions.
Resistance from manual workers
Raising Denmark’s retirement age sparked protests, particularly among workers in physically demanding jobs. Carpenters, masons, and laborers argue that staying in the workforce until 70 is unfeasible due to physical strain. A 47-year-old Danish carpenter highlighted the challenge of balancing long hours with health in later years.
In Uruguay, unions opposed the 2022 reform, but the 2024 referendum solidified the new minimum age. Resistance reflects concerns about quality of life after decades of work. In countries like Bolivia and Colombia, with lower minimum ages, manual workers have more flexibility but face reduced pensions.
Key criticisms of higher retirement ages include:
- Manual jobs demand physical effort incompatible with advanced age;
- Low-educated workers have less access to administrative roles;
- Insufficient pensions complicate the transition to retirement;
- Regional inequalities worsen precariousness in Latin America.
Regional differences in Latin America
Latin American retirement ages vary widely. Argentina, Chile, and Peru require 65 for both genders, aligning with Uruguay. Bolivia, Colombia, and Ecuador set ranges between 58 and 62 for men and 55 to 60 for women. Venezuela stands out with 55 for women, but economic crisis renders pensions nearly symbolic.
Brazil, with 62 for women and 65 for men since the 2019 Pension Reform, is among the region’s strictest. The reform introduced transitional rules, like the points system, requiring 92 points for women and 102 for men in 2025. These changes aim to curb the INSS deficit, projected at R$328 billion for 2025.
ECLAC stresses that pension precariousness is a chronic issue. In countries like Paraguay and Nicaragua, only 20% of seniors receive benefits, forcing many to remain in the informal market.
Hybrid models gain traction
Denmark combines public contributions with private funds, ensuring robust pensions and flexibility for workers. The system allows partial retirements, where workers reduce hours while receiving benefits. High labor formalization, with 90% contributing regularly, makes this viable.
Uruguay’s 2022 reform encouraged private fund participation, especially for high-income workers. The public system covers 80% of retirees, but average pensions of $400 monthly are deemed insufficient for the middle class. Chile, a pioneer in individual capitalization since 1981, inspired reforms in Peru and Colombia.
In Bolivia, the system is mostly public, with mandatory contributions for formal workers. The minimum age of 58 for men and 50 for women reflects lower life expectancy, but only 30% of seniors receive pensions. ECLAC suggests expanding non-contributory benefits to boost coverage.
Gradual adjustments prevent shocks
Denmark adopted a phased approach, raising the minimum age in stages (67 in 2025, 68 in 2030, 69 in 2035, and 70 in 2040). This strategy minimizes resistance and allows labor market adaptation. Prime Minister Mette Frederiksen noted that the automatic review model will shift to periodic negotiations with unions and employers.
Uruguay also chose a smooth transition, applying 65 only to those born from 1977. Older workers follow interim rules, with minimum ages between 60 and 64. In Brazil, the 2019 Pension Reform introduced five transitional rules, including 50% and 100% tolls for those nearing retirement.
Key reform milestones include:
- Denmark: Life expectancy linkage since 2006, with five-year reviews;
- Uruguay: 2022 reform, with 2024 referendum;
- Brazil: Constitutional Amendment 103 of 2019, with annual adjustments;
- Chile: Individual capitalization since 1981, a regional benchmark.
Digital tools aid planning
In Denmark, digital platforms like PensionsInfo integrate public and private data, offering detailed pension projections. In Uruguay, the Social Security Bank provides online calculators, though adoption is limited by technological barriers.
In Brazil, Meu INSS is the primary planning tool. It allows users to check the National Social Information Registry (CNIS), simulate benefits, and apply for pensions. In 2025, the platform has 40 million active users, but CNIS errors often require manual corrections, such as submitting work records.
Teachers and special categories
Danish teachers have flexible rules, with partial retirements from 62, provided they reduce hours. In Uruguay, the 65-year minimum applies, but teachers with 30 years of service can retire at 60. In Brazil, female teachers need 54 years and 25 years of teaching in 2025, while male teachers require 59 years and 30 years.
Workers exposed to hazards, like miners and electricians, retain special benefits. In Denmark, they can access early pensions at 65 with proof of hazardous conditions. In Uruguay, special retirement requires 55 years and 20 years of exposure. In Brazil, minimum ages range from 55 to 60, depending on risk.
Brazil’s teacher requirements in 2025 include:
- Female teachers: 54 years, 25 years of teaching, 87 points;
- Male teachers: 59 years, 30 years of teaching, 97 points;
- Calculation: 60% of average salary, plus 2% per excess year;
- Alternative: 100% toll for lower ages.
Financial sustainability in focus
Denmark allocates 10% of GDP to pensions, but the hybrid model eases public sector pressure. Uruguay, with 8% of GDP, faces challenges due to informality, limiting revenue. In Brazil, the INSS deficit, estimated at 2.58% of GDP in 2025, underscores the need for reforms, like regulating Microentrepreneurs (MEI) and adjusting rural pensions.
ECLAC recommends Latin American countries increase labor formalization and create non-contributory benefits. Chile and Uruguay already implement complementary funds, while Bolivia and Paraguay rely on fragile public systems. Sustainability requires balancing revenue, coverage, and pension amounts.
