Jean-Philippe Delsol is a lawyer, president of the Institute for Economic and Fiscal Research.
The French work 1490 hours per year on average in 2021. France is at the bottom of the pack in the OECD, but eight other countries work less per year including Germany (1349) and Denmark (1363).
France is also one of the countries where the number of years of work is the lowest on a lifetime scale.
According to Eurostat, in 2019 it was one of the four European countries where people work the shortest: 35.4 years on average, compared to 39.1 in Germany, 39.4 in the United Kingdom, 39.8 in Norway , 42 in Sweden…
Less work per week and fewer years worked combined, make France one of the countries where people work the least.
This cuts off our competitiveness and above all, which weighs on our pay-as-you-go pensions.
Indeed, in a pay-as-you-go system, working people pay in real time, with their contributions, the pensions of retirees.
The hours worked bear the burden of pensions.
Fewer hours worked means more contribution for working people and/or less pension for retirees.
It means less purchasing power for everyone, more costs and less competitiveness for businesses.
Admittedly, the trade unionists who demonstrate would no doubt like the nation to take charge of their pensions independently of their contributions.
But to tell the truth, it already does it in a considerable and unbearable way.
As observed by the High Commissioner for Planning in his report on pensions of December 8, 2022,
“beyond the contributions which it is normal for the State and public authorities to pay as employers […] , the funds could not be in balance without additional public financial assistance”
.
For their public functions, the State, local authorities and hospitals pay contributions approximately 2 to 8 times higher than private employers: 30.6% for civil servants of local authorities or hospitals, 74.3% for civil servants of the State, 126.1% for the military.
Overall, in 2021, public authorities contributed to mandatory pension funds, in addition to normal contributions equivalent to those of the private sector (16.5%), in the form of so-called "equilibrium" surcharges, subsidies or tax transfers for solidarity expenditure linked to various social benefits, an amount of 113 billion euros after the contribution of which there is still a need for additional financing of nearly 30 billion euros, necessary to guarantee the
balance of the whole system.
In total, concludes François Bayrou, public contributions, therefore the effort of taxpayers, represent 143 billion euros in resources, or 41% of the 346 billion euros in total revenue from our pension system.
If they want more retirement and less money, why not authorize them to retire earlier with a discount calculated according to the effective retirement age compared to that of the retirement age at the full rate.
Jean-Philippe Delsol
One way out of the crisis would be to offer more freedom to employees to choose their retirement age.
According to a recent Ifop opinion poll, a very large majority of employees (61%) prefer to earn less money and have more free time compared to 29% of opposing opinions, whereas in 2008 opinions were reversed.
If they want more retirement and less money, why not authorize them to retire earlier with a discount calculated according to the effective retirement age compared to that of the retirement age at the full rate.
Admittedly, early departures will be possible, at the full rate, according to the current reform project, but only in very specific cases of long careers, started before the age of 20, or for people with disabilities, work injuries or incapacity or disability.
Why not allow all employees to anticipate by accepting a reduction in their pension?
We can set minimum thresholds to prevent people from retiring too quickly without having the vital means of subsistence, but, subject to this reservation, there is no legitimate reason to prevent everyone from managing their retirement as they wish. 'hears.
Those who would continue to work beyond the age of 64, possibly combining employment and retirement,
Wherever they operate in the world, funded pension systems deliver better pensions in proportion to the contributions paid.
Jean-Philippe Delsol
Another solution would also be to allow those who so wish to gradually contribute to capitalization funds which would allow them to leave at the age of their choice after a sufficient number of years of contributions so that the amounts paid can be invested. in long-term savings, which is the best guarantee of a satisfactory financial return.
A small part of the contributions could nevertheless continue to be collected for the benefit of a system of distribution and solidarity.
Wherever they operate in the world, funded pension systems deliver better pensions in proportion to the contributions paid.
And capitalization would avoid
Unless, of course, what prevents finding such a compromise in the common interest is the shared will of the unions and the government to continue their role play which puts France on the ground at regular intervals and to retain control of our lives. rather than giving us control.
Both would like to continue to decide the age at which one retires.
It would be more worrying and it would then be even more urgent for citizens, who are also taxpayers put to the test by the current system of distribution, to seek to impose reasonable solutions rather than locking themselves into debates and ideological blockages. , sterile and costly.