Per PBS

France is raising the age at which workers can enjoy full retirement pensions with special exemptions given to those who started working before they turned 20. The change is expected to occur in 2030 and will gradually start this year.

French Prime Minister Elisabeth Borne announced that the retirement age wherein workers would get full pension will increase by 62 to 64. The change will gradually start increasing every year by three months starting now.

Borne also added new requirements, including individuals needing to have worked a minimum number of years to receive the full pension. By 2027, to claim full pension, workers individuals should have worked at least 43 years.

The move by Borne has incited calls for protests from worker unions and political opponents. The Prime Minister released a statement regarding the positive benefits of this move.

Borne: “Working more will allow future retirees to get higher pensions... By 2030, our system will be financially balanced,”

Borne added a few exceptions to this rule.

Here are some ways citizens can claim full pension earlier:

Citizens who started before being 20 years old
Certain categories like police officers, firefighters, and others

The argument being made by the government is that the French are starting to live longer than before. Because their average lifespan is increasing, there need to be adjustments to the pension system to become financially sustainable.

Another thing that is trying to be pushed is for payroll contribution increases to be covered by employers instead of the workers themselves.

This is very important because every French worker is entitled to receive a state pension at retirement. This comes as the global economy is still somewhat recovering from its massive drop in 2022.

Last year, the global stock experienced an $18 trillion wipeout, resulting in the worst performance since the crisis of 2008. This also comes at a time when global hedge funds are headed towards a 14-year-low performance.

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