The retired French among the better-off of l'OECD

The retired French among the better-off of l'OECD


In the traditional view of pension issued Tuesday, the OECD recommends that France departures a little more to the map. It also notes that the retired French are among the better-off on four points :

1. The age of retirement

based on a career without the interruption that started at 20 years old, the French is very well off with a pension without tax relief to 61.6 years, in exchange for 63.9 years on average in the OECD.

only Four countries are doing better (Luxembourg, Slovenia, spain, Turkey for 60 years and South Korea to 61 years), while three others (Iceland, Israel, Norway) set the “normal” age to 67.

France, however, will catch up “a portion of the delay” with the lengthening of the contribution period (43 years in 2035), and the reform of complementary pension schemes mandatory Agirc-Arrco, which will result in a system of bonus-malus temporarily from 2019 to encourage employees to postpone their retirement.

The “normal” age will gradually decline to 64 years to the French entered the labour market at 20 years in 2016, which will therefore retire in 2060. But then again, France ranks among the countries with the most lucky, since the young workers of the OECD will be expected to achieve on average to 65.7 years of age to be eligible for a full pension. It would be part with the Greece, Luxembourg, Slovenia and Turkey, the five countries with a retirement age lower than 65 years to 2060, as against more than 68 years in Denmark, Italy and the netherlands.

2. The length of time in retirement

as a result of retirement at an age to be relatively low compared to its neighbours, France is also the world champion in the length of retirement (a title that she had already in 2015). The OECD figure is the” hope of remaining life ” of the retired French to 25.6 years (20.3 years for the OECD average, 23.7 years for the Italians, 21,1 years for the Germans, to 18.9 for the Americans, and 14.6 years for South Koreans).

3. The average income of the over 65 years of age

taking Into account all their income, including those of labour and capital, the French are more than 65 years received in 2014, to 103.4% of the average income of the entire population of the country. A score that places them once again in the top of the list ended by Estonia (66,5 %), and significantly above the average (87,6 %).

For all that, a working document of the Conseil d’orientation des pensions, revealed by “Les Echos” on Monday , shows that the purchasing power of the retired French has dropped significantly, particularly since 2010, due to the lower revaluation of pensions and of the increase of social contributions.

4. The replacement rate

After a full career at the average wage in the private sector, the net replacement rate, that is to say the ratio between the pension that one key at the time of retirement and the last activity income received, will be 74 % after the reform.

The pensions of the retired French are rather close to their final salaries, compared to the OECD average (63 %) and even the european Union (71 %).

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