WASHINGTON — France is trying to find ways to help its struggling economy and unemployed workforce, and their latest effort is a retirement plan where workers decide when they retire.
Reuters said that this new system is a points-based retirement credit system and not a years-of-work tally for people that have tough and physical jobs like construction.
Prime Minister Jean-Marc Ayrault said that the details will be worked out and gives the physical labor workers more say in their retirement. How will this be financed? Through social welfare contributions, which the government expects to rise in due time.
But, this does not account for the growing pension problem that the country and government faces.
The country’s mandatory pension contribution period is under review and could be expanded from 41.5 years to up to 44 years, which could have far-reaching consequences throughout Europe and in investor’s minds. And, of course, pensioners that are better off will be contributing more.