French President Emmanuel Macron on Tuesday used executive powers to raise the government’s minimum retirement age for national pension benefits, amid protests inside and outside the chambers.
The central theses
- The age at which French people receive state pension benefits has been raised from 62 to 64.
- The average retirement age in the United States is 64.9 for men and 64.7 for women, although Americans can claim retirement benefits at age 62.
- Indonesia has the oldest average retirement age in the world at over 68, while Sauids on average retire before their 60th birthday.
Thousands of workers went on strike in the days leading up to the decision as Macron continued to push for the retirement age to be raised from 62 to 64.
The retirement age in France, even after being raised to 64, is lower than the typical age at which people in other economies have access to state-subsidized pension benefits. According to the IMF, the legal retirement age in Europe is most often 65 years.
The average retirement age varies widely around the world, with OECD data showing that men exit the labor market on average between 58.9 and 68.7 years. The age of females ranges from 51.1 to 69.2. The age at which retirees can receive state benefits is also variable.
France has a below-average retirement age
While workers in France are struggling to maintain their current retirement age, workers in other countries may be considering how long they need to keep their jobs.
In the United States, employees can begin receiving Social Security benefits at age 62, and your benefit amount will increase if you delay receiving them. According to the government, nearly 90% of Americans age 65 and older receive Social Security benefits.
In Canada, early retirement is possible from the age of 60, while the normal retirement age is 65. In Israel, women can receive a state pension at age 62, while men have to wait until age 67. In Mexico, early retirement begins at age 60. while full retirement may require waiting until age 65 to 68, depending on the pension plan.
In Germany, along with France, early retirement for some starts at 63.7 years, while the standard retirement age is 65.7 years. Across the Channel, the standard retirement age in the UK is 66.
Macron’s moves are unpopular
According to 2020 OECD data, early retirement in France starts between the ages of 55 and 62 and regular retirement between 63.5 and 64.5 years. The retirement age in France is slightly better than average compared to workers worldwide and far from the worst.
Prime Minister Emmanuel Macron has sought to raise the retirement age from 62 to 64 as part of a plan he says will make the French economy more competitive.
Meanwhile, workers in critical industries like garbage collection went on strike to oppose the change. Macron also raised the age without the backing of lawmakers, with many protesting when he made the one-sided call.
In addition to raising the retirement age, Macron’s proposal would require workers to wait until age 67 to receive a full pension if they have worked less than 43 years.
Economic forces may require change
In the US, the average planned retirement age is rising, according to a Gallup poll. But in France the opposite was the case. Since the 1970s, the average retirement age in France has slowly decreased, while other countries have raised retirement ages.
French workers do not want to abandon this trend, but economic realities may force the changes.
Just as the Social Security system in the United States could come under pressure in the future due to an aging population and other demographic factors, the French system could find itself in deficit over the next decade. The United States Social Security Fund is expected to run out of cash in 2034 barring changes.
Source : www.investopedia.com