France to Pursue 'Pension Reform' Raising Retirement Age... Decision After Social Dialogue

Pension Reform Plan to Be Released on January 10
Retirement Age Raised from 62 to 65 Years

[Asia Economy Reporter Yoon Seul-gi] The French government, which is pushing pension reforms including raising the age to start receiving pensions from the current 62 to 65, stated that the reform plan could be changed through compromise.

French Prime Minister ?lisabeth Borne appeared on France Info radio on the 3rd (local time) ahead of a series of talks with labor union leaders and said that the 'extension of the retirement age to 65' will be decided through social dialogue. She implied that if the government's goal of balancing the pension system by 2030 can be achieved, other solutions could be accepted during the negotiation process.

The pension reform plan prepared by the government is scheduled to be unveiled on January 10. Then, it will pass the Council of Ministers on January 23 and be discussed in the lower house in early February.

The pension reform plan is a long-standing pledge made by French President Emmanuel Macron as he seeks re-election. During his first term, President Macron pushed for pension reform but faced a general strike in December 2019. However, during his re-election campaign last April, he promised pension reform again, stating that the retirement age must be raised to ease financial pressure.

French President Emmanuel Macron is holding a press conference after a video conference on the 'energy crisis' with German Chancellor Olaf Scholz at the ?lys?e Palace in Paris on September 5 last year (local time). Photo by AP·Yonhap News

However, negotiations between the government and labor unions regarding this reform plan are also expected to face difficulties. When it was revealed that the draft pension reform plan included raising the pension age from the legal retirement age of 62 to 65, unions strongly opposed it, threatening to launch large-scale strikes. Even moderate unions stated that if the government forcibly extends the retirement age, they would join large-scale protests and strikes.

Public opposition to extending the retirement age is also strong. In a recent poll conducted by Harris Interactive commissioned by RTL Radio, one in two respondents opposed the pension reform. The survey, conducted from December 27 to 28 last month with 2,279 adults aged 18 and over, showed that 54% opposed the pension reform, while 44% supported it.

Meanwhile, France is known to have the shortest contribution period for pensions among European Union (EU) countries but the longest period of receiving pensions. According to the Organisation for Economic Co-operation and Development (OECD), the average retirement age in France in 2020 was 60.4 years for men and 60.9 years for women.

This content was produced with the assistance of AI translation services.