The Gradual Increase: From 62 to 64
France's legal minimum retirement age is transitioning from 62 to 64 as a result of pension reform legislation enacted in 2023 under President Emmanuel Macron. This change is being phased in, impacting individuals based on their birth year. The transition occurs in three-month increments for each generation affected.
The Impact of Birth Year
Determining your minimum retirement age in France largely depends on your birth year. According to French Social Security information, the age changes as follows {Link: Cleiss https://www.cleiss.fr/docs/regimes/regime_france/an_3.html}:
- Born between 1955 and August 31, 1961: Eligible to retire at 62.
- Born between September 1, 1961 and December 31, 1961: The age is 62 years and 3 months.
- Born in 1962: The legal age is 62 years and 6 months.
- Born in 1963: The legal age is 62 years and 9 months.
- Born in 1964: The legal age is 63.
- Born in 1965: The legal age is 63 years and 3 months.
- Born in 1966: The legal age is 63 years and 6 months.
- Born in 1967: The legal age is 63 years and 9 months.
- Born in 1968 or after: The new legal minimum age is 64.
The Condition of Contribution Quarters
A full pension in France isn't solely based on reaching the legal minimum age; it also requires a certain number of contribution quarters, a requirement that is also increasing over time. To receive the maximum benefit, those born in 1965 or later need a full 172 quarters, or 43 years of contributions. Missing quarters at retirement age results in a permanently reduced pension.
Retiring Without a Full Contribution Period
Individuals without the necessary contribution quarters can work longer or benefit from an "automatic full-rate entitlement" at age 67. At this age, the pension is calculated at the full rate (50%) regardless of contributions.
Can I Retire Earlier?
Yes, exceptions exist for earlier retirement with a full pension in specific situations such as a long career starting at a young age, permanent incapacity, arduous work, or disability {Link: Cleiss https://www.cleiss.fr/docs/regimes/regime_france/an_3.html}.
The Contributory Pension System Explained
France's pay-as-you-go (PAYG) system is funded by current workers' contributions and comprises two main parts {Link: expatica.com https://www.expatica.com/fr/finance/retirement/french-pension-830117/}:
- The Basic Pension (Retraite de Base): Funded by compulsory social security contributions, calculated based on the average of the 25 best-earning years and contribution quarters.
- The Supplementary Pension (Retraite Complémentaire): Mandatory schemes, historically managed by bodies like AGIRC-ARRCO, calculated on a points system based on points accumulated during a working life.
Comparison of French vs. US Retirement System
The French and US retirement systems differ significantly in philosophy and funding {Link: expatica.com https://www.expatica.com/fr/finance/retirement/french-pension-830117/}.
| Feature | French System (post-2023 reforms) | U.S. Social Security System |
|---|---|---|
| Funding | Primarily a pay-as-you-go (PAYG) system, funded by current workers' contributions. | Also a pay-as-you-go (PAYG) system, funded by payroll taxes. |
| Calculation | Uses an average of the 25 best-earning years for the basic pension. Uses a points system for the mandatory supplementary pension. | Based on an average of the 35 highest-earning years. |
| Minimum Retirement Age | Gradually increasing from 62 to 64, depending on birth year. | 62 for early retirement with reduced benefits. |
| Full Pension Age | A variable age (gradually increasing to 67) based on birth year, or upon accumulating 172 quarters (43 years) for those born in 1965 or later. | Gradually increasing from 66 to 67, depending on birth year. |
| Full Pension without Max Quarters | Guaranteed at age 67, regardless of contribution quarters. | Requires reaching a specific age and paying into the system for 40 quarters (10 years). |
What the Future Holds
Recent pension reforms have faced public and political debate, including protests. Proponents argue for financial viability amid an aging population, while critics raise concerns about the burden on workers. Despite political discussion, official reversals of the age increase are considered unlikely.
For more detailed information, consult official French government resources like the service-public.fr portal: https://www.service-public.fr/particuliers/vosdroits/F35063?lang=en.
Conclusion
The question of at what age do French people retire now has a nuanced answer. The legal minimum retirement age is increasing to 64 for those born from 1968 onward, but a longer working life or reaching age 67 is necessary for a full pension.
