Quick history of the French pension system and the 2023 reform

In France, the concept of retirement pensions first appeared for sailors of the royal navy in the 17th century. However, it wasn't until the end of the Second World War that a general pension system was set up. This system is still in place as of 2023, but has undergone, and is currently undergoing, a series of reforms. From its creation in 1945 to the 1980’s, these reforms focused on expanding the system to all workers and improving pensions, culminating in 1983 with the retirement age changing from 65 to 60.

However, from the 1990’s onwards higher life expectancy and ageing demographics generated an increasing imbalance between retired workers and workers contributing to the pension system. This imbalance, as well as a changing economic environment (particularly a slower economic growth) have led to concerns about the viability of the pension system, resulting in a series of reforms starting in 1993 slowly but steadily increasing the duration of contribution to receive full pension (from 37.5 years in 1983 to 42 years and the minimum legal age of retirement (from 60 in 1983 to 62 in 2010).

The 2023 reform is in the same vein as the previous ones from 1993 onwards. In order to guarantee the financial balance of the pension system various changes are planned, among them, the minimum legal age of retirement goes from 62 to 64 and the contribution duration for full pension goes from 42 to 43. In exchange, the reform plans to set up a 1 200€ minimum pension.
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This increase of the contribution duration and the legal age as well as the seemingly low impact of the new minimum pension have led to opposition and unrest from a substantial part of the population. Finally, the reform might deepen gender inequalities. With the reform, because of the prevalence among women of part-time work and career breaks for childcare, women will have to postpone their retirement more than men to receive full pensions. For example, women will have to work nine additional months compared to only five months for men born the same year, for lower retirement pensions due to, on average, lower salaries. 

​References: https://www.ilcfrance.org/images/upload/pages/16%2009%2014%20retirement%20in%20France%20word%20final.pdf
https://www.legifrance.gouv.fr/contenu/Media/files/autour-de-la-loi/legislatif-et-reglementaire/actualite-legislative/2023/plfrss_ecox2300575l_rapport_annexe_cm_23.01.2023_0.pdf
https://www.lemonde.fr/les-decodeurs/article/2023/03/16/les-questions-pour-comprendre-la-reforme-des-retraites-petites-pensions-carrieres-longues-et-impact-pour-les-femmes_6163845_4355771.html


*Article prepared by Afeji