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2025/2026  KAN-CGMAA5007U  Navigating Pension Systems in an Aging World: Lessons from Denmark

English Title
Navigating Pension Systems in an Aging World: Lessons from Denmark

Course information
Language English
Course ECTS 3 ECTS
Type Elective
Level Full Degree Master
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Min. participants 30
Max. participants 60
Study board
Study Board for Governance, Law, Accounting & Management Analytics
Programme Master of Science (MSc) in Economics and Business Administration - General Management and Analytics (GMA)
Course coordinator
  • Katja Mann - Department of Economics (ECON)
Main academic disciplines
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 03/11/2025

Relevant links
Learning objectives
  • Identify within an overlapping-generations model how different pension schemes affect individual saving decisions over the life-cycle
  • Understand the economics of population aging and identify the main mechanisms through which pension systems are challenged by demographic changes
  • Compare the welfare and distributional implications of different pension systems
  • Demonstrate a solid understanding of the structure of pension systems from a practical perspective, such as types of pension schemes, the role of pension funds, regulation of the pension sector, etc.
  • Analyze the relationship between the pension system and households’ economic and financial decisions based on Danish and international evidence
Course prerequisites
Basic knowledge of economics
Examination
Navigating Pension Systems in an Aging World: Lessons from Denmark:
Exam ECTS 3
Examination form Active participation

The completion of this course is based on active student participation in class. The course will be considered as passed if the students participation - based on an overall assessment - in the class activities fulfill the learning objectives of the course. The individual student’s participation is assessed by the teacher.
The student must participate in A combination of assignment and presentation
Individual or group exam Individual exam
Grading scale Pass / Fail
Examiner(s) Assessed solely by the teacher
Exam period Summer
Make-up exam/re-exam Oral exam based on written product
In order to participate in the oral exam, the written product must be handed in before the oral exam; by the set deadline. The grade is based on an overall assessment of the written product and the individual oral performance.
Size of written product: Max. 5 pages
Assignment type: Essay
Duration: 20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Examiner(s): If it is an internal examination, there will be a second internal examiner at the re-exam. If it is an external examination, there will be an external examiner.
Description of activities
A combination of assignment and presentation: The student must participate in minimum 80% of the scheduled teaching.

In addition, the student must participate in a group work and hold a presentation based on material provided by the teacher. The group size will be 4-6 students and the presentations will be in the class. 
Course content, structure and pedagogical approach

The Danish pension system is often ranked as one of the best pension systems in the world. An essential part of the Danish welfare state, it generates high living standards in retirement and mitigates old-age poverty. At the same time, it is financially sustainable and responds powerfully to the challenges posed by demographic aging – at a time where pension systems in many other countries are coming under pressure. While the system also has its weaknesses, e.g. relating to pension fund regulation and governance, it serves as a blueprint for reforming pension systems in other countries.

 

This course is an introductory course to the economics of pensions. We will use the Danish example to study what makes for a good pension system, and develop policy recommendations for pension systems in other countries.

 

We will start by studying pension systems from a theoretical perspective. We will focus on two prototype pension systems – pay-as-you-go pensions and funded pensions –, understand how they work and identify their strengths and weaknesses. We will also study how each responds to demographic aging.

 

In the second part of the course, we will study how pension systems work in the real world. We will get familiar with the key features of the Danish pension system, learn about its history and cast a glance into its future. Building on the Danish case, we will then consider the pension systems of other countries and derive concrete suggestions for making these pension systems more sustainable.
Research-based teaching
CBS’ programmes and teaching are research-based. The following types of research-based knowledge and research-like activities are included in this course:
Research-based knowledge
  • Classic and basic theory
  • Teacher’s own research
  • Methodology
Research-like activities
  • Analysis
  • Discussion, critical reflection, modelling
Description of the teaching methods
Discussions, presentations.
Groups size 4-6 students will hold an in-class presentation based on material provided by the teacher - presentations should be up to 15 minutes.
Feedback during the teaching period
Through in class discussions
Student workload
Lectures 18 hours
Presentations and preparations 66 hours
Further Information

2-week course that cannot be combined with any other course.

 
Expected literature

Andersen, T. M. (2025). 'Pension Economics', Oxford University Press, Oxford, UK.

 

Andersen, T. M., Jensen, S. H., and Rangvid J. (2022). ‘The Danish Pension System - Design, Performance, and Challenges’, Oxford University Press, Oxford, UK.

 

Additional material will be announced at the start of the course.
Last updated on 03/11/2025