Retirement age: how does France compare to other European countries?

Pension reform is expected to make a comeback in the coming months.

On LCI, this Thursday morning, the government spokesperson, Gabriel Attal, reiterated the government's determination in this matter.

The reform “

will take place

”, he asserted, and the transformations “

will continue and increase by the end of the five-year term

”.

The postponement of the legal age from 62 to 64 is notably on the table.

To read also: "Double or double pensions"

According to the latest results from the National Old Age Insurance Fund (CNAV), which pays basic pensions for employees and the self-employed, the average retirement age is increasing slightly in France: it was 62.8 years in 2020, compared to 62.7 years a year earlier.

In Europe, there are many disparities in the legal retirement age.

Behind an average of 65 are various situations.

Read also: Does the government have time to push through the pension reform before the end of the five-year term?

France appears with Norway, Sweden and Greece among the few countries which apply a legal retirement age of less than 63 years.

But for Swedes and Norwegians, a so-called “

flexible

”

retirement system

has been put in place to encourage later departures.

It makes it possible to retire from the age of 62 in Norway and 61 in Sweden, on condition that the condition of working life is fulfilled, even if the amount of the pension is less than in the case of retirement. later departure.

Swedes can only receive the guaranteed minimum level and certain housing benefits from the age of 65.

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An increasing trend

At the opposite extreme, Iceland and Italy are the ones who retire the latest with a legal age of 67.

But in many European countries, such as Belgium or Spain, reforms are underway to lower the legal retirement age.

In Denmark, the age for receiving a pension is gradually increased to reach 68 in 2030. In the Netherlands, from 2025, the statutory retirement age will be increased by 8 months for each year of retirement. increase in life expectancy.

But behind these age differences are hidden systems for calculating different rights and different durations of contributions.

Germany in particular comes out on top, asking for 45 years of contributions while only 40 years are needed in Greece and Portugal.

In France, this period varies between 41 years and 3 months and 43 years, depending on the year of birth.

Three different calculation systems

Three systems for calculating rights are in force in Europe.

The annuity scheme is currently used by France and a majority of European countries.

The calculation of the pension is then based on three factors: the reference salary, the contribution period and the annuity rate.

The “

notional accounts

” system allows for the accumulation of “virtual” capital which corresponds to the sum of the contributions paid.

When active workers retire, this capital is returned to them according to a conversion coefficient which takes into account their life expectancy at the time of their departure and the revaluation rate.

Italy, Denmark and Sweden have opted for this method of calculation.

Read also: Pensions: united front of unions and employers

The points-based retirement system, chosen in Germany, is based on contributions paid over the course of one's career, converted into points. The establishment of the

"universal regime"

through the point retirement was also an electoral promise of the current French president, Emmanuel Macron. But the yellow vests crisis and the coronavirus epidemic have, for the moment, decided otherwise.