Retirement age to be increased to 64

In the beginning of January, the French government presented its pension reform plans. The main aspects are the gradual increase of the current retirement age of 62 years to 64 by 2030 and the accelerated increase of the contribution periods required for a deduction-free pension from 42 to 43 years. The reform is also intended to contribute to greater unification of the French pension system in the long term.

Focus on ensuring financial sustainability

The French Social Advisory Council (Conseil d'orientaion des retraites) had published calculations in September 2022 according to which the pension insurance will have a deficit in the medium term, which is expected to be between 0.5 and 0.8 per cent of the gross domestic product in 2032. In 2022, the pension insurance has still shown a slight surplus amounting to 0.1 per cent of the gross domestic product. The French government rejects financing the deficit through taxes, citing investments to achieve the climate goals. To ensure financial sustainability, the reform focuses on raising the retirement age and increasing the employment of older workers.

Raising the retirement age in France

Until now, insured persons in France have been able to retire without deductions at the age of 62 if they have made contributions to the pension insurance for 42 years. According to current pension law, these minimum contribution periods are to increase to 43 years by 2035. For all insured persons who do not fulfil these periods, the standard retirement age of 67 years applies to a retirement without deductions. Under the French government's proposal, the retirement age is to be raised annually by three months to 64 by 2030. Furthermore, the increase in minimum contribution periods will be brought forward to 2027. The standard retirement age of 67 is not affected by the reform.

Increased retirement age: exeptions

The lower pension age limits for workers in particularly stressful occupations, such as in the military or nursing staff in hospitals, are not to be changed. In contrast, the retirement age of long-term insured persons will be adjusted. The aim is to ensure that no one has to work longer than 44 years to receive a pension without deductions. According to this, insured persons who took up gainful employment before the age of 16 and have consistently paid contributions can retire at the age of 58. The retirement age is 60 for 16-18 year olds and 62 for 18-20 year olds.

Strengthening prevention

To strengthen prevention in the workplace, the draft provides for the introduction of a fund worth a billion euros. Medical care for workers in high-stress occupations is also to be improved. Furthermore, new possibilities for financing occupational retraining leave are to be created.

Long-term goal: Unification of the pension system

The central aim of the unimplemented reform of the pension system during Emmanuel Macron's first term of presidency was to unify the pension system and abolish the various special pension schemes. The current reform proposal is far less ambitious in this regard. The different calculation of pension entitlements, such as in the public service or in the compulsory supplementary pension schemes, have not been addressed at all. The above measures to increase the retirement age are to be applied only to new workers in special pension schemes, such as workers in the Paris public transport company RATP, the energy and gas utility EDF, the central bank and notary clerks.