Infographics. Quality of life, legal age ... Where are the French retirees in Europe?

This is the tenth day of the collection of pensions since the beginning of Quinquinium. One hundred performances are planned for this Friday, mostly around the central theme: Revaluation of pensions. The call was initiated by nine union organizations (CGT, FO, CFTC, CFE-CGC, FSU, Solidiers) and associations (FGR-FP, LSR, Ensemble et Solidaries). With inflation accelerating to + 2.1% in one year, according to INSEE, the “nine-member team” thinks the 400 400 million expansion for the elderly in the 2022 Social Security budget is inadequate. But what about the pension systems in our neighborhoods? The Figures compiled by the Organization for Economic Co-operation and Development (OECD) Provide a comprehensive overview of the lives of retirees in Europe.

Very low poverty rate among French retirees

In 2019, 3.4% of people over the age of 66 lived below the poverty line in France, compared to 8.3% of the rest of the population. One of the lowest rates in Europe. By comparison, the average age at this age in 38 member countries is 13.5%. The group of good students is led by Denmark, Iceland and the Netherlands, with adults below the poverty line of less than 4% (over 65). But these indicators suggest that the overall poverty rate in these northern European countries should be below 10%.

according to The latest annual report from Mercer, a consulting firm, Danes and Dutch benefit from the best pension system in Europe. This is not the case in the Baltic states (Estonia, Lithuania and Latvia). Unlike the countries mentioned above, the overall population instability is also high, with an average of 16.5 in these three states.

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Furthermore, the same inequalities as gender exist within the same country. France is no exception: 2.6% of men over the age of 65 are living below the poverty line, compared to 3.9% of women of the same age. The gender gap in Estonia is significant: 21.1% for men and 42.8% for women. According to 2015 figures, in the European Union, the average amount of their pension is 25% lower than that of men. Some exceptions: Most men live below the poverty line in Portugal, Spain or Norway.

France is one of the countries where you can retire the fastest

To take into account the differences in employment paths between the two sexes, some European countries were selected Legal retirement age Different. In Austria, for example, a woman can legally leave at age 60, compared to the age of 65 for a man. The record for longevity at work is for Italian and Icelandic workers, whose legal retirement age is 67. They leave a year later than their Danish neighbors and work five years longer than the 62-year-old Norwegians and French. The average retirement age in Europe is 65.

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But beware, legal ages are not enough to compare to pension systems and experience variations in contribution periods. In this regard, inequalities are very high in Europe. Lead, Germany with a contribution period of 45 years against 40 years in Portugal and Greece. In France, this period depends on the year of birth, but varies between 41 years, 3 months and 43 years.

A substitute rate above the European average

This variation in the European pension system makes it difficult to calculate the pensions allowed in each country. To understand how a pension system provides income to its beneficiaries in lieu of their wages, however, we can rely on the net replacement rate. The second defines net individual pension rights, which are divided by net salary. The amount is based on social security contributions made by employees and retirees.

According to the OECD, in 2019, the average income in France was 58% instead of a full career net profit equal to the average income of a former retired French private employee. ‘OECD. Two countries differ on this issue: Italy and Luxembourg, where net retirement pensions are closest to their wage earnings. Prior to the Covid-19 pandemic, Italy was one of the highest spending countries in Europe on financing the pension system. They represented 16.6% of GDP. Speaking of the current Italian system, the Mercer report quoted above calls into question its effectiveness in the long run. In the alpine country, retirement is at the center of concern because it is the oldest population in Europe.

In contrast, Anglo-Saxon countries are less liberal. In Ireland and the United Kingdom, the mixed retirement system is primarily funded, replacing 35.9% and 28.4% of a former employee’s salary.

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A. Facing Demography in half the populationThere are, of course, many countries, such as Spain, Sweden or France. Wants to reform the pension system. According to a report by the European Commission from last May, the working age population in the EU will drop from 20 to 64 to 48 million by 2070. In 2019, it will drop from 265 million to 217 million. Outcome: One person over the age of 65 will have 1.8 working age EUs by 2070, compared to the current three.