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The French are up in arms over retiring at 64. How do different nations evaluate?

London CNN  — 

A nationwide strike in France to protest an increase within the retirement age drew greater than 1,000,000 individuals onto the streets on Thursday earlier than ending in violent clashes with police in Paris and different cities.

The protest adopted a strike of an identical magnitude in January and days of smaller walkouts and demonstrations in between. And extra industrial motion is deliberate for subsequent week.

What’s making the French so offended is a brand new retirement age that may nonetheless be one of many lowest within the industrialized world.

Below a brand new regulation, pushed by way of parliament with out a vote final week, the retirement age for many French staff will probably be raised from 62 to 64.

That can nonetheless preserve France under the norm in Europe and in lots of different developed economies, the place the age at which full pension advantages apply is 65 and is more and more shifting in direction of 67.

In america and the UK, the retirement age is between 66 and 67, relying on the yr you had been born. Present laws envisages an extra rise from 67 to 68 in Britain between 2044 and 2046 (though the timing of this improve is being reviewed and will change).

Protesters in Bordeaux, western France, on March 23, 2023

State pensions in France are additionally extra beneficiant than elsewhere. At practically 14% of GDP in 2018, the nation’s spending on state pensions is bigger than in most different nations, in response to the Group for Financial Cooperation and Improvement.

The French authorities has defended the retirement reform — which incorporates different modifications — as essential to preserve the pension system funded. Taxes on present staff pay for the advantages of retirees, and as individuals stay longer and extra child boomers retire the system would in any other case ultimately go bankrupt.

The financing of pension methods is a priority in lots of developed economies.

“Authorities businesses predict large deficits within the coming years, as boomers proceed to retire, and they should make modifications in a short time — in any other case they’ll lose cash to spend money on different issues,” Renaud Foucart, a senior economics lecturer at Lancaster College in England, informed CNN in January when the French plan was proposed.

Pension reform is “seen as taboo” in France, in response to Foucart.

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