Their work deserves to be watched closely. The economists of the Institute of Public Policy (IPP) have largely inspired the discussions on the reform of pensioners led by Jean-Paul Delevoye, whose recommendations are expected for mid-July.
At a conference organized on Wednesday 26 June, Antoine Bozio, Simon Rabaté, Audrey Rain and Maxime Tô presented in three notes the outline of what could be an ambitious pension reform, ensuring a sustainable balance of the system. And, if we listened to them, the recurrent debates on the age of retirement would disappear from the public space …
Why the life expectancy of the French continues to progress
"At the moment, the pension system is living beyond its means, entrusts a relative of the file. Suddenly, we adapt in fits and starts, by regularly changing the age parameters or by deciding, like last year, to index the pensions ".
To put an end to these permanent adjustments – which undermine the confidence in the durability of the system – Emmanuel Macron had thus promised a reform 'Systemic', integrating automatic stabilizers at the very heart of the future point system.
The first of these, according to the researchers of the IPP: for each insured, the mass of pensions that will be paid throughout his retirement should be equivalent to that of the contributions earned during his entire professional life. The increase in life expectancy is therefore taken into account at the time of liquidation. With this principle of equivalence, the longer your life expectancy, the lower your pension will be except working – and therefore contributing – longer.
More legal minimum age
In this case, the setting of a legal minimum age becomes in principle even useless since the amount of the pension automatically adjusts. If you leave very early, you will have a very small pension. If you work very long, it will be higher.
VIDEO – Why embark on a pension reform?
The age of rights opening is no longer a parameter that balances the system. On the other hand, stress the economists of the IPP, he "Becomes a safety net to prevent early departure, with pensions too low", aware that public officials have to fight against the "Preference for the present" which, according to economists, often influences individual choices.
Keep a kiosk at 62
This is the reason why Jean-Paul Delevoye plans to keep the legal limit at 62 years old. With the risk that a good number of insureds liquidate their retirement at this age with pensions that will not ensure a good standard of living.
"When deciding whether or not to retire, individuals respond to social norms, not just financial incentives.", decrypts Audrey Rain. Now, the 62 years have indeed become a social norm. Should we therefore propose a new reference age and encourage the insured to liquidate their retirement at 63 or 64?
This is not the hypothesis favored by the researchers of the IPP. "An age reference, which would be the same for all, is not ideal, Audrey Rain says. The new benchmark could be replacement rate (the ratio between the pension and the last salary, Ed) set at 75% ". Each insured could be informed of the age at which he would reach this 75% – the new social norm – to make an informed decision. Why 75%? "Today it is the average replacement rate in France, the highest of all OECD countries", explains Audrey Rain.
A new postponement of the reform
As to whether it is too high, it is the whole debate that threatens the very future of the reform today. Jean-Paul Delevoye promised that it would not be used to save on the pension system, even as the government is looking for billions to finance the management of dependence or measures taken to calm the angry yellow vests.
In the absence of arbitration, the presentation of the bill announced for September could, according to the daily newspaper The echoes, be postponed until next December.
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