The actual retirement age rose sharply during the 2010s, across all social groups. This rise cannot be explained solely by the increase in the age of entitlement from 60 to 62, as planned under the 2010 reform: it is also due to other factors, such as the sharp decline in early retirement before the age of 60. This note provides an overview of each category’s current exposure to the various possible reform measures. Although higher-skilled categories retire on average slightly later, the majority of pensions take place before the age of 65: all categories would therefore be largely affected by an increase in the age of entitlement beyond 62. However, beyond the standard retirement arrangements, certain categories are particularly affected by specific schemes. Nearly a quarter of unskilled manual workers are affected by disability just before retirement. The intermediate social groups are, for the time being, more affected by early retirement schemes than by the general rules.
Pensions ages since 2010: what lessons can be learnt for the forthcoming reform?
The purpose of this note is to highlight trends in the effective retirement age since 2010, whilst examining possible measures to stabilise the share of French pension expenditure in GDP.
Reference IPP Policy Brief No. 84
Presentation
Key Results
- The average retirement age has risen by around two years over the last 10 years, and this increase has been fairly consistent across all social groups.
- Public debate often focuses on the statutory retirement age, but retirements at this age account for only a proportion of all retirements, and the
increase in this threshold brought about by the 2010 reform explains only part of the recent trends. - Early retirement mainly affects the middle social groups: half of those in intermediate occupations and skilled workers and employees retire before the age of 62.
One in four unskilled workers was on disability or had a disability immediately prior to retirement, and therefore claims their pension on the grounds of incapacity for work. - One in four unskilled manual workers was on disability benefit or had a disability immediately prior to retirement, and therefore claims their pension on the grounds of incapacity for work.
- Given the scale of these situations, the debate leading up to the reform would therefore benefit greatly from distinguishing between three statutory retirement ages, each of which merits thorough discussion: that for early retirement on the basis of a long working career (currently 60), the age applicable to those recognised as unfit for work, and the standard retirement age for those not deemed unfit for work.
Method and Data
This note uses data from INSEE’s Labour Force Survey to analyse these trends in detail, breaking them down by socio-occupational category and educational qualification.
