After President Emmanuel Macron attempted French pension reform by raising the age from 62 to 64, France has been embroiled in ongoing protests and strikes. Plus, what does this mean for your pension in France?
President Macron’s government wants to raise the pension age from 62 to 64. According to him, the reason for doing this is to ‘share-out’ the economy. He argued that it was necessary to do as people are living longer. Life expectancy in France is currently 82 years. The alternatives would be to increase taxes on the working population or cut pension values, both solutions would likely not be well-received.
France has one of the lowest retirement ages in Europe. In the UK, it is 66. The highest are Norway and the Netherlands at 67. With the exception of Turkey, across Europe, the minimum retirement age is 62 for men and 60 for women.
Still, there has been strong pushback against increasing the age to 64. Polls have shown that two thirds of the French population oppose the changes.
Opposition parties have called for the wealthy to pay more taxes to accommodate for the need for more state finances instead of pension reform.
Article 49.3
One of the reasons this changed has caused such uproar is that President Macron enacted Article 49.3. It is a political mechanism that can be used to encourage political change in France’s Assemblée Nationale without requiring a majority from the chamber.
This then led to Macron being subject to a vote of no confidence, which he survived. This means that Macron’s pension reforms are likely to become law.
Protests are ongoing
Many have protested French pension reform.
There has been unrest in France since Macron announced these plans back in January. Clashes between protesters and police have even taken place. King Charles and Queen Consort Camilla were due to make a state visit to Paris and Bordeaux in March. However, at the last minute, President Macron advised them not to come, saying that it would not be appropriate given the gravity of the situation in France.
On Wednesday, April 5th, talks between trade unions and Prime Minister Elisabeth Borne broke up with no resolution. Consequently, protestors have been told to gather for an 11th day of strikes this Thursday.
So far, Macron shows no sign of changing his mind on this reform and neither do the protestors.
What does this mean for my pension?
How will French pension reform impact you?
If you are currently living in France and have a British pension, then this law change does not impact you.
However, if you are entitled to a French pension, then should the protests not succeed, and the law go through, then you will be entitled to your French pension at 64 years old.
If you receive your pension in a different currency to the currency of the country that you are living in, say you receive a pension in British pounds and you live in France, then we would advise contacting a currency specialist, Smart Currency Exchange. Currencies fluctuate all of the time and this can affect your pension. Smart Currency Exchange can help you safeguard your money.
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