French worry about retiring at 64

What has the French particularly angry is that the new retirement age, which is already one of the lowest in the industrialized world , will be raised. Specifically, under a new law passed without a vote by the French National Assembly last week, the retirement age for most French workers will be raised from 62 to 64.

Protesters protest pension reform in Nice, France on March 23, 2023. Photo: Reuters

That would still keep France below the norm in Europe and many other developed economies , where the full retirement age is 65 and is increasingly approaching 67.

In the US and UK, the retirement age is between 66 and 67, depending on the worker’s date of birth. Current law is scheduled to increase from 67 to 68 in the UK between 2044 and 2046 (although the timing of this increase is under review and could change).

State pensions in France are also more generous than elsewhere. At nearly 14% of GDP in 2018, the country spent more on state pensions than most other countries, according to the Organisation for Economic Co-operation and Development.

The French government has said pension reform is necessary to sustain the system. Taxes are levied on current workers to pay for the benefits of retirees. And as people live longer and more baby boomers retire, the pension system will eventually go bust.

Financing pension systems has always been a concern in many developed economies.

“Government agencies are predicting huge deficits in the coming years, as baby boomers continue to retire, and they need to change very quickly — otherwise they will lose money to invest in other things,” Renaud Foucart, senior lecturer in economics at Lancaster University in the UK, told CNN in January when the French plan was proposed.

Mai Anh (according to CNN)

Source: https://www.congluan.vn/tuoi-nghi-huu-o-phap-so-voi-cac-nuoc-khac-se-nhu-the-nao-post240837.html