Explainer-Macron pension reform ends cherished French exception

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Explainer-Macron pension reform ends cherished French exception
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Macron's pension plan raises the statutory retirement age from 62 to 64, putting an end to what many saw as a cherished social benefit.

Given that his pension plan, which raises the statutory retirement age from 62 to 64, merely puts France more in line with its European Union neighbours, some foreign commentators have wondered what all the protests and public anger were about.

The OECD calculates that a French man typically spends 23.5 years in retirement, second only to Luxembourgers' 24 years and well above the 20 years that men in Britain and Germany spend retired.French pension payments as a share of pre-retirement earnings are comfortably higher than elsewhere. A French retiree's pension post-tax income comes in at nearly three-quarters of their pre-retirement earnings compared with 58% in Britain and nearly 53% in Germany, according to the OECD.

The period workers are required to pay in is gradually being raised from 42 to 43 years, and Macron's reform brings forward the 43-year target to 2027 from 2035 previously. The OECD estimates that the normal retirement age for a Frenchmen who started work at 22 is 64.5 years, fractionally higher than the EU average of 64.3 but behind Germany's 65.7 years.

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