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Funding, missing from the pension reform


DECRYPTION - It nevertheless appears as a means of reducing the pension deficit, while preserving the French from falling pensions.

It is a national taboo that the government did not want to lift.

Capitalization remains completely absent from the pension reform project.

The French system remains centered on pay-as-you-go, where the contributions of active workers directly pay the pensions of retirees.

Exit the capitalization, adopted in many countries where the contributions are saved and invested to produce dividends, returned to the assets when they retire.

However, the subject has established itself in the debates and is making its way into people's minds.

Because the French pay-as-you-go system is at the end of its tether for demographic reasons: it will be difficult to continue to increase the retirement age indefinitely to make up for the deficits and ensure retirees a decent level of pension.

Hence the idea put forward by some to introduce a dose of capitalization into the system, alongside the distribution.

Read alsoAt 63.1 years old, the retirement age of private sector employees continued to decline in 2022

The French can certainly already supplement their future retirement with savings mechanisms

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Source: lefigaro

All life articles on 2023-03-23

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