A bombshell report has revealed that Denmark’s pension system is under major strain, with immigrants from Muslim-majority countries taking early retirement at alarming rates.
According to the data, a staggering 67% of individuals aged 50 and above from Muslim nations are retiring early, compared to just 11% of ethnic Danes. The statistics highlight an overrepresentation of immigrants in Denmark’s early retirement system, especially those from Iraq, Lebanon, Turkey, Somalia, Algeria, and Afghanistan. These groups have early retirement rates ranging from 15% to 29%, significantly higher than the 6.6% for Danes.
Sólbjørg Jakobsen, a Danish Member of Parliament, called attention to the disparity, stressing that “We cannot sit idly by on this.” She pointed out the striking difference between Danes and foreign-born residents when it comes to early retirement.
The figures have raised concerns across the political spectrum, with Employment Minister Ane Halsboe-Jørgensen acknowledging the issue but defending early retirement as a long-term benefit. She said the government must remain politically flexible but promised to keep an eye on the situation. Meanwhile, parties like the Danish Folk’s Party and the Liberal Alliance are urging a rethink of early retirement policies, especially for non-Western immigrants.
In a related move, Denmark’s ruling Venstre party called for a review of the social benefits granted to non-Western immigrants, suggesting that greater efforts should be made to get them into the workforce. At the same time, Christian Rabjerg Madsen, the Social Democrats’ spokesman, emphasized that any changes should protect sick citizens from losing their pensions.
Denmark’s social benefits are among the most generous globally, offering early retirees near the same income as they earned in their previous jobs. However, concerns about the sustainability of such programs are growing, especially in light of The Economist’s 2021 article, which argued that migration is draining the country’s welfare system. According to the finance ministry’s 2018 report, immigrants from non-Western countries and their descendants cost Denmark a net 31 billion kroner ($4.9 billion), while those from Western countries contributed a net 7 billion kroner.
The situation is even more critical among Muslim immigrants. The ministry’s first report on people from 24 Muslim-majority countries found they accounted for 77% of the financial burden, despite making up just half of the non-Western immigrant population. Concerns are also mounting about the cultural impact, with fears that certain values brought by Muslim migrants may clash with Denmark’s democratic principles, particularly regarding women’s rights.
Denmark isn’t alone in facing such challenges. In Germany, nearly 65% of welfare recipients are foreign-born or of foreign origin, and the cost of this could reach between €20 billion and €25 billion by 2025.
