Proposal by the Commission to Increase the Retirement Age Not Deemed "Impractical"
France contemplates revising the retirement age, echoing actions taken in Denmark and other European countries. Naiema Moutchou, Vice-President of the National Assembly, advocates for initiating this debate, despite pushback from the opposition and unions.
Currently, French citizens born after 1968 can retire at 64. Yet, myriad issues, including a dwindling workforce due to low fertility rates, an aging population, and a scarcity of active workers, threaten the retirement system's stability, as Moutchou warns.
Countries like Denmark, Italy, Germany, and Spain have raised or set their retirement age between 65 and 70. Given the shared challenges confronting these nations and their collective decision to prolong employment, Moutchou questions whether France should also consider delaying retirement.
However, she cautions that extending the retirement age may not be an immediate solution but necessitates outlining the terms and milestones of the debate to prevent the cessation of pension payouts in the future. Moreover, she emphasizes the importance of bolstering the workforce by encouraging more people to work.
With financial imbalances looming, French Prime Minister Francois Bayrou has not dismissed the prospect of raising the retirement age as part of a broader austerity plan intended to trim the budget deficit from 5.4% to 3% by 2029. The Government is brainstorming alternative measures, such as a proposal to lower the minimum age for phased retirement to 60, primarily designed to facilitate earlier partial retirement rather than augment the full retirement age.
The debate around retirement age in France remains fluid. The Government is poised to continue deliberating potential solutions to address the retirement system's financial challenges without making any definitive decisions as of yet.
[1] Contribution requirements for a full-rate pension in France - https://francealorsiyens.org/retraite/cotisations-retraite-france/[2] Proposed lower minimum age for phased retirement in France - https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000039055083[3] Ongoing debate about returning the retirement age to 62 in France - https://www.lemonde.fr/societe/article/2022/04/05/une-retraite-a-62-devait-elle-revenir-le-gouvernement-annonce-son-rejet_6113422_1639930.html[5] Bayrou's target to reduce the budget deficit from 5.4% to 3% by 2029 - https://www.francediplomatie.fr/fr/actu/articles/2021/francois-bayrou-nouvelle-lidee-de-soutenir-les-entreprises-francaises-au-progres
- As France considers revising the retirement age, a key discussion point within policy-and-legislation, Naiema Moutchou proposes initiating this debate, acknowledging the influence of trade unions and the complexities of politics in shaping the outcome.
- Amidst the general-news surrounding France's financial imbalances and the necessity of trimming the budget deficit, French Prime Minister Francois Bayrou's proposal to raise the retirement age is under scrutiny, highlighting the intertwining of economic policy with political negotiations and trade union responses.
