The French government unveiled Wednesday a proposed reform of the state pension system, raising the minimum retirement age to 62 and introducing higher taxes for the rich in an attempt to tackle the country's ballooning public deficit.
The French system
When can you retire in France?
Anyone can draw a full pension in France at the age of 60 so long as they have paid social security contributions for at least 40.5 years. This is set to rise to 41 in 2012. At 65 anyone can retire on the full pension even if they have not worked the full 40.5 years. In some jobs, deemed especially wearing, it is possible to retire as young as 50.
How many pensioners?
According to the Labour Ministry, there are some 15.5 million pensioners in France, out of a population of some 65 million. This figure is set to rise to 18 million in 2030.
How generous are full pensions?
Public sector workers retire on 75 percent of their final six-month salary. Private sector workers get 50 percent of their earnings in the 25 best years, plus benefits from additional schemes.
How much do workers pay into the system?
Civil servants have 7.85 percent of their salary deducted each month for pensions contributions versus 10.65 percent for private sector workers.
How much does this cost the state?
According to the state Pensions Council, the annual pension deficit is forecast to reach 32 billion euros in 2010, then 80 billion in 2030.
The minimum retirement age in France is set go up from 60 to 62, Labour Minister Eric Woerth said as he announced a sweeping reform of the French pensions system.
“It is imperative that we salvage our pensions system,” he told a news conference Wednesday. “Working longer is inevitable. There is no magic solution.”
Date created : 2010-06-16