France’s new president, Francois Hollande, has called for a younger retirement age for some workers: a drop from 62 to 60.  What many countries consider to be an economic mistake, France sees as a “pillar of France’s social benefit system” (AP).

To be fair, Hollande has been trying to win over a people angered by his predecessor, Nicholas Sarkozy, who raised the retirement age from 60 to 62 not long ago.  Sarkozy’s age hike was viewed as unfair to low-income workers and Hollande’s change would help mothers and those who suffer workplace accidents.  

Yesterday, IAHSA attended a press release by the Geneva Association which issued a report on Addressing the Challenge of Global Ageing. Their recommendations for the international crisis were supportive of raising the retirement age.  Here is why:

  • To align retirement age with life expectancy
  • Relieve public finance
  • Increase taxes and social security contributions to stimulate economies
  • Increase Labor force participation

So what is the right thing to do? Of course this is subject to debate but The Geneva Reports leave us with a few ideas:

  • Offer incentives for part-time work beyond the official retirement age
  • Eliminate incentives for early retirement
  • Accept the need to save more

French flags

French Flags [Credit: Quinn.Anya]

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