Danish pension savings and income 2000-2011

This report aims at analysing the pension cover of Danes in the period 2000-2011, focusing particularly on the so-called residual group, i.e. persons who risk low pensions and therefore will be more or less dependent on state transfer income after they retire. The report examines pension assets, pension contributions, as well as income and degrees of coverage for pensioners. The report also examines how pensioners see their financial situation, their degree of satisfaction with their financial situation, and how their consumption changes when they retire from the labour market. The report shows that pension assets and contributions have risen for most groups of Danes. However, there is very strong correlation between labour market participation and future pension income. People with low or no attachment to the labour market risk having very low incomes as pensioners, and these people are also over-represented in the residual group. The report therefore emphasises that low pension incomes are not primarily related to the pension system, but to the residual group's weak labour market attachment.