Saturday, October 30, 2010


At last, a French commentator who understands the real problem of retirement in France:

Le retard français tient, en premier lieu, à un âge effectif de sortie du marché du travail extrêmement précoce et notablement inférieur à l'âge d'ouverture du droit à retraite. Cette réalité persistante apporte la preuve que les freins à l'emploi ne sont pas principalement d'ordre légal. Ils relèvent de politiques de formation, du travail et de l'emploi inadaptées au contexte du vieillissement de la main-d'oeuvre. Il serait donc urgent de permettre aux seniors de durer en emploi en rendant le travail soutenable, et de convaincre les entreprises que les seniors peuvent être autre chose qu'une variable d'ajustement de leur masse salariale.


Anonymous said...

Yesterday on the news it was stated that "senior" status started at age 50. And that at age 55, a large number of people from the private sector were laid off. Hence one of the points against the reform: it won't do any good to raise the retirement age to 62 if it means people are unemployed longer - it'll cost more (unemployment benefits) and won't contribute at all to the retirement funds. However (cf. Les echos) it means that all fonctionnaires who could retire between age 55 and 60 will now stay on till age 62, cutting 30,000 job openings that were usual job providers for college graduates.
If one is optimistic, one can imagine that businesses will now keep their workers longer and that "senior status" won't be reached till age 55, pushing back the concept of "too old to be productive" to 60 or something. I certainly hope so because it sounds like a real waste to consider 55 year olds as unproductive. (I don't know how you can spin it optimistic for the young.) But at the very least it'll take a few years to take effect, during which there'll be an "unemployment jam". And since unemployment drives the retirement contributions down, I'm thinking this reform may actually be counterproductive, like the "reforme des regimes speciaux" which ends up costing MORE now that it's been "reformed".

Since the retirement system in France is based on employment and salary amount, a more solid (but impossible to implement?) policy would be to increase employment and encourage decent salaries. For which, of course, we'd need a good economy, not a recession.

Although the wisdom of creating added unemployment in a recession eludes me.

Won, Philippe et Raphael said...

except that if you are unemployed at 55 years old, you will receive aid during 2 years from unemployement "benefit" (cost to the society), and from 57 to 67 years old, nada, no more aid (if you want the full rate of your retirement benefit, and you dont work, so not enough cotisation trimesters, people will have to wait until 67 years old) is may be the calculation of the government to "safe" money on the retirement plan....but for which results for people!! It is where the private funds for complementary pension will enter in the game!!