A Drees study reveals that 35% of people retiring between 2012 and 2020 saw their living standards rise, with retirees now faring almost as well as workers. Three COR-commissioned studies confirm the benefits of raising the legal retirement age, an economically sound but politically charged option.
France’s pay-as-you-go pension system faces strain from an aging population and declining birth rates, which curb the number of contributing workers. A Drees study indicates that 35% of individuals retiring between 2012 and 2020 experienced a rise in living standards, with retirees now enjoying levels almost equal to those of active workers—a situation deemed unsustainable long-term. To shore it up, three studies released on Thursday by the Conseil d’orientation des retraites (COR), conducted by the OFCE, Direction générale du Trésor, and Paris School of Economics (PSE), highlight the merits of delaying the legal retirement age. Commissioned by the COR, these reports describe the measure as economically beneficial yet politically explosive. Separately, Economy Minister Roland Lescure advocated last week at Euronext’s annual conference for a French pension fund. “We must also work on pension funds (...). Most of the money coming from the United States to Europe actually comes from American pension funds, and there is no reason we shouldn’t have our own,” he stated. These ideas emerge as deficit forecasts worsen, reigniting debate over introducing capitalization.