The French pension system and its functioning

This short video, from the series "Draw me the economy", outlines the French pension system.

What is a pay-as-you-go system? How is the balance of the system affected by the changes in the ratio between contributors and pensioners? What are the main policy options for ensuring this balance? The video provides a concise answer to these questions while presenting the main changes introduced by the 2013 reform.

Source: Draw me the economy, in partnership with Le Monde and the Cité de l’économie.

Objectives: To become better acquainted with the main concepts addressed during the debates on the pension system. The video starts by presenting the contribution and (basic and supplementary) pension flows in the PAYG system, then takes a look in greater detail at the pension scheme with the largest number of contributors: the private sector pension scheme. The financial balance of the scheme and the changes in the ratio between contributors and pensioners since 1975 are discussed. After presenting the solutions most frequently put forward, the video analyses three levers for action: the level of contributions, the level of pensions (and the concept of indexation), the length of contributions (legal retirement age, number of quarters, discount, lengthy careers, arduous work). Finally, the video explains how to calculate the amount of basic pension.

Audience: 12 +

Duration: 3’45

To find out more and watch the other videos from the Draw me the economy series Dessine-moi l’éco
 


Published on 20 October 2014.