“Abandoning any reference to retirement age would over-penalize short and uneven careers” | EUROtoday

Se transfer away from any reference to age [de départ à la retraite] – and solely considering the variety of years of contributions – is without doubt one of the avenues put ahead to beat the difficulties during which pension reform finds itself. But is it reasonable? In the present system, age has two roles. It first defines the date of opening of rights (under, inconceivable to go away). It then impacts, together with the contribution interval, the quantity of the pension: full price you probably have sufficient years of contributions or you probably have reached 67, discount in case you are under, premium above that. Can one and/or the opposite of those two roles be known as into query?

Regarding the second, it’s regular to supply for a progressive pension relying on the time of departure. An early departure of 1 yr means one yr much less contribution to the system’s sources and one yr extra pension by way of bills. Financial stability requires that this be counterbalanced by a decrease pension. Equity additionally requires it, at the least between people with the identical traits who freely select their departure date. This progressivity may even be accentuated in a perspective of total stability of public funds, as a result of a yr of anticipation additionally means much less exercise and due to this fact fewer sources for financing all collective providers, not simply pensions.

Once this precept is accepted, it may be carried out via numerous combos of standards of contribution length, age or life expectancy. Duration performs a serious function within the present system as a result of it is without doubt one of the parts of the contributory effort. But the pension will increase greater than proportionally with this length, as a result of it has lengthy been thought of that longer careers correspond to decrease life expectations: granting the next pension ought to due to this fact compensate for this inequality. However, this speculation is poorly verified. The lowest life expectations typically concern individuals with discontinuous careers or whose entry to employment has been tough. The length criterion doesn’t profit them.

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