“The link between labor productivity and viability of the distribution pension system is clear” | EUROtoday

DIn the start of the twentieth century, every year, in France, productive effectivity elevated on common by 2.7 %on common. This steady improve allowed that an hour labored at this time produces about twenty occasions extra worth than in 1900, which made it doable to finance a spectacular discount in working time all through a lifetime – it has been divided by two since 1900 – whereas making certain a substantial improve in collective wealth.

The hyperlink between productiveness and viability of a distribution pension system is obvious. The final report of the pension orientation council supplies that on the horizon 2050 the asset ratio per retired will fall to 1.4 in opposition to 1.7 at this time. Faced with this demographic decline, 4 levers might be activated: improve working time (specifically by pushing the retirement age), decreasing the quantity of pensions, taking extra belongings … or growing the richness created.

This final choice is the rise in productiveness. It is probably the most painless socially because it concurrently improves pensions of retirees and the usual of residing of belongings. It avoids reasoning in a zero -sum logic, this false concept, however, alas, frequent in minds, based on which any enchancment for some ought to essentially be on the expense of others.

To compensate for the anticipated decline within the variety of belongings by 2050, the Court of Auditors retains an assumption of annual productiveness development of solely 0.7 %. Before assessing credibility, an important consequence of such a state of affairs ought to be emphasised: 0.7 % development would simply compensate ageing, which implies that all productiveness features can be captured by retirees. No revenue could possibly be dedicated to the rise in asset earnings, a discount of their working time or investing in public companies. In a context the place the typical way of life of pensioners already barely exceeds that of belongings and the place the collective need to work much less is strengthened, this state of affairs seems troublesome to maintain politically and socially.

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