Changes in the Russian pension system have caused extraordinary excitement and interest in this area on the part of citizens. The controversial reform to raise the retirement age has sparked much debate about how social security operates in different countries.
In this regard, for comparison, we should consider the features of pension systems in different countries of the world. This applies to the USA and Western European countries. They are the ones who have the most efficient social security mechanisms.
The French pension system is one of the best in the world, and French pensioners are the most financially secure. At the same time, this country is faced with a crisis in its pension system, which arose due to an increase in the total number of elderly people against the background of a decrease in the birth rate and, accordingly, a decrease in the share of the economically active population.
Russia has faced a similar problem, which is why the retirement age has increased. An overview of the French pension system is presented in the article below.
General information about the pension system in France
Every French citizen has the right to financial security in old age. Upon reaching a certain age, anyone has the right to apply for a pension, and it does not matter whether the person worked or not.
However, the size of the pension in France varies and those citizens who did not work at all can only count on a minimum benefit . Those who work form their pension by transferring appropriate contributions.
Thus, in accordance with French law, a monthly amount of money in the amount of 16.35% of the employee’s salary is deducted for each employee.
Reference! Unlike Russia, where insurance premiums for employees are paid exclusively by the employer, in France the amount of contributions is paid by both the employer and the employee in equal shares. Thus, each employee spends a little more than 8% of his salary on the formation of his pension.
By transferring funds to the state fund, the so-called basic pension is formed.
However, most French people, in order to increase their pension capital, form an additional payment. It is cumulative in nature. Thus, every working Frenchman can enter into an agreement with pension funds (analogous to our non-state pension funds), and then transfer a certain amount of money there.
The largest of them are Agirc and Arrco. Contributions received there during the employee’s working life are transformed into special points. After dismissal from a particular place of work, the number of points is multiplied by their value, and the resulting amount goes to the formation of an additional pension.
The combination of two types of pension provision results in an average pension amount of about 80% of the salary level. This contributes to the fact that French citizens do not feel as strongly a decline in their level of income and quality of life after going on vacation compared to residents of other countries, where the gap between the level of wages and old-age payments can reach values of hundreds of percent.
Pensions in France
French pension system
The French pension system has a rather complex structure and many nuances. Moreover, any Frenchman upon reaching retirement age has the right to a pension, regardless of length of service. If the calculated benefit amount is below a certain level, the state pays a so-called solidarity pension of 800 euros, which has replaced the minimum old-age pension since 2006. In addition, after the death of one of the spouses, the French have the right to part of the pension of their wife or husband.
In France, the state pension is divided into a basic and an additional (funded) part. The basic pension is calculated on the basis of the average monthly salary, and the additional pension is calculated on the basis of points accrued to the employee after dismissal from each enterprise where he worked.
Pension amount
The size of the pension in France is affected by the following:
- if you have more than 41.5 years of service (166 quarters), the pension is accrued at 100%; if it is less than this period, then payments are reduced by 1.25% for each missing quarter of service;
- periods of forced unemployment and maternity leave of up to 6 months are taken into account in the total length of service without reducing it;
- if insurance contributions have been made during 40 years of service, a supplement is due to the pension;
- When retiring at the age of 67, the French are entitled to a full pension, not tied to length of service.
Given that the pension is usually half the average salary plus the accumulated insurance amount, French pensioners sometimes receive more than a working person.
The average pension in France is approximately 1000 euros. For Europe, this is an average, which is on par with payments in the UK and Italy. Residents of Sweden, Germany and Spain have slightly higher pensions, and pensioners in Northern Europe (Denmark, Finland, Norway) receive pension payments many times more than citizens of France. Unfortunately, in the countries of the former USSR, including Russia, pensions are much lower, in some places even tens of times less than in France. Of course, the price level in a particular country should also be taken into account in relation to the size of the pension. Nevertheless, the majority of French pensioners live in comfortable old age and feel social security from the state.
Dependence of pension payments on salary
Monthly contributions to the pension fund for freelancers, freelancers, artisans and small entrepreneurs are 16.35%. The rest of the employees pay the same percentage, but half of this amount is contributed by the company.
The basic pension in France is calculated as 50% of wages for the best 25 years, taking into account inflation. For some civil servants and officials, the basic pension corresponds to 75% of the average salary for the last six months.
Supplementary pension is considered a different method. Insurance contributions paid by employees to special pension funds Arrco and Agirc entitle them to points, the number of which is multiplied by their fixed value upon dismissal. Together with additional allowances and taking into account pension points, the French receive about 80% of average earnings.
Retirement age
A distinctive feature of the French pension system is the equality of the minimum retirement age for women and men. In accordance with the pension reform, by 2021 it will increase from 60 to 62 years, while the work experience must be at least 42 years. It should be noted that this is a fairly high bar, since in other countries it is enough to work on average for about 30 years to receive a pension. Another option for receiving a pension is to retire at age 67 (before the reform - 65 years), which guarantees pension payments in full even with incomplete work experience.
For some categories of workers, the retirement age will remain at the same level.
Citizens who began working before the age of 18, those who suffered from industrial accidents and as a result became disabled, war veterans, and former concentration camp prisoners will, as before, retire at the age of 60. For workers with difficult working conditions, for example, miners and railway workers, representatives of some artistic professions, the minimum retirement age is also lower than the standard.
The French government plans to gradually increase the minimum retirement age to 67 years by 2023. In their opinion, the reform helps solve the problem of the annually growing shortage of funds for the payment of pension benefits. The French extremely disapproved of all innovations, however, these measures were justified by the desire to save the country from the economic crisis. For example, the retirement age in Germany is already gradually being raised, and at 67 years old, pensioners will only retire by 2029.
Russian pensioners in France
Russians who immigrated to France and other foreigners can also count on pensions. To receive a French pension, several conditions must be met:
- the age of the applicant is over 65 years;
- residence in France for more than 10 years and mandatory stay in the country for at least 6 months per year;
- the pensioner must have an income of less than 9,600 € per year for a single person or 14,904 € for a couple;
If these conditions are met, even if there is no work experience in France, you can count on a minimum old-age pension of up to 800 € per month for a single person or 1242 € for a couple.
In order to receive a pension in France, you must submit the following documents to the pension fund:
- work book;
- diploma of higher or secondary specialized education;
- certificate of deregistration from the Russian pension fund;
- certificate of accrued pension in the Russian Federation.
If at least one of the above conditions is not met, you can apply for a pension in Russia and receive it in France. In accordance with the current laws of the Russian Federation, pensions assigned before January 1, 2015 can be paid and transferred to persons who left for permanent residence outside the country. At the same time, the pensioner must annually provide the Russian pension fund with a special certificate confirming that he is alive.
Pensions issued after this date are paid only on the territory of the Russian Federation, unless a different procedure is established by an international agreement with the country to which the pensioner immigrated.
For Russians who have worked in France, the conditions for calculating and calculating pensions are similar to the conditions for native French people, i.e. payments are accrued upon reaching the age of 62 years and having a work experience of more than 41.5 years.
Most immigrants from Russia simply do not have time to earn such an impressive work history in France. The best option for such people is contributions to private pension funds, which allow them to receive a worthy addition to the calculated state pension. Most often, when concluding an employment contract, the employer provides many options for private pension plans. In this case, it would not hurt the employee to consult a specialist, since sometimes the difference in the amount of pension payments from different funds is quite noticeable.
What is the retirement age in France
Questions related to how old the French are when they retire are an extremely sensitive topic for French society. For a long time it was 60 years. However, as of 2021 it is already 62 years.
Important! French women and men can exercise their pension rights at the same age.
This reform was negatively received in France, however, the authorities of the republic announced further plans to increase the age when a citizen goes on vacation and has the right to start receiving pensions. Thus, official statements stated that after 2023 the French will become pensioners upon reaching the age of 67 years.
This statement caused widespread unrest in France, which ultimately forced the government to abandon its plans.
It should be noted that the retirement age in France, which is 62 years old, is being reduced for certain categories of citizens.
Thus, the right to early financial support can be used by:
- workers working in difficult and unhealthy conditions (miners, railway employees, etc.);
- persons who began working at the age of 18;
- prisoners of concentration camps, participants in military operations;
- disabled people injured as a result of work-related injuries.
This list is not completely exhaustive.
France decided to raise the retirement age to 64 from 2027
A large number of residents of the country turn to private funds for help, which offer to take advantage of the conditions of a funded pension. What attracts residents of the republic to this method of receiving pension support is that it is impossible to withdraw funds from the fund before the official registration of the pension. An exception is forced cessation of work due to injuries, health problems, caring for a close relative or a disabled child.
In France, as in many other European countries, the state pension system is based on 2 levels:
When calculating the basic amount, the average French salary is taken into account. The additional part depends on the amount of bonuses assigned to the future retiree by his company after dismissal.
All working French people contribute 16% of their salary to the Pension Fund. If for officially employed citizens half of the amount is paid by the employer, then representatives of creative professions and businessmen pay in full on their own. The basic pension is usually considered to be 50% of the average salary for the 25 most successful financial years.
The calculation takes inflation into account. Taking into account their own savings in private pension funds, the French can count on an amount reaching 80% of their salary.
The French pension system has several important features:
- the calculated length of service is not reduced in the case of justified unemployment and parental leave lasting less than six months;
- if a Frenchman decides to work for another 5 years after reaching retirement age, the pension will be full, regardless of length of service;
- If a citizen has insurance payments while working, the pension increases.
Considering that many French people make insurance contributions, the pension is often higher than the average salary in the country.
Despite the right of every French person to receive a pension, in order to count on the maximum amount, you must work for at least 40 years. For each missing year, a reduction factor is applied. In this case, about 1.2% is deducted from the maximum pension amount for each missing quarter of work experience.
The average pension in France is about 1,000 euros. There is a minimum pension level per year of 6,000 euros and a maximum of 12,000 euros per year. For a European country this is an average level. Pensioners in England and Italy are at approximately the same level. Average pensions for Germans, Swedes and Spaniards. But residents of Scandinavian countries have significantly higher pensions. Pensions are especially high in Norway, Denmark and Finland.
Citizens of Eastern European countries, unfortunately, remain socially unprotected. The level of pensions in Russia, Ukraine, Belarus, Poland, Bulgaria, Romania is several times lower compared to Western Europe. In part, this fact can be explained by low prices for goods and services, but still, in France, pensioners live much better in old age and can count on state support.
In France, the structure of state provision for older citizens provides for basic and funded salaries. The size of the basic pension directly depends on the citizen’s work experience, and for the calculation of the second type, special points are provided. Points are issued after changing jobs, and subsequently they increase the amount of payments due several times.
Pension amount
France is one of the most favorable countries for retirees to live. Pensions are relatively high here. Thus, according to research by the French newspaper La tribune, the pension of the average Frenchman is 1,506 euros . At the same time, the minimum amount guaranteed by the state is 1000 euros per month.
A feature of French pension legislation is that after the death of one of the spouses, the surviving spouse receives, in addition to his pension, an amount equal to half of the deceased’s payment.
In general, the pension in France is quite average for European countries. Citizens of neighboring Germany and Great Britain can count on the same amounts. Payments to pensioners in northern countries (Norway, Sweden, Denmark) are much larger, but this is due to the fact that the cost of living there is higher. In the countries of Southern Europe and former countries of the socialist camp, payments are much lower than in France.
In addition, a feature of the pension system in France is that only persons with a total work experience of at least 41.5 years can take advantage of the right to receive a full pension, having already reached the age of 62 years.
If it is less, then a reduction factor is applied when calculating the payment. This rule does not apply if a citizen decides to go on vacation after 67 years of age. In this case, the calculation coefficient will not be applied even in cases where the person has not accumulated the required length of service.
French pension system
The pension system in France has its own nuances and features that directly affect the quality of life and social security of older people. The main difference seems to be a single retirement age for both sexes. The minimum age was set by reform in 2021 and is 62 years old . In this case, the citizen must have a work experience of 41.6 years .
Pension payments consist of several parts:
- The basic part is calculated in accordance with the average level of earnings throughout the length of service;
- The funded part consists of points generated through insurance contributions to the State Pension Fund. It is part of compulsory insurance, a government scheme financed by a payroll tax known as “social security contributions”;
- Voluntary savings . Regular voluntary insurance contributions to a private Pension Fund can be as low as 50 euros per month, and investors are entitled to tax benefits of up to 10% of total income. This increases the chances of future financial and social security.
The basic part mainly represents 50% of earnings; as an exception, there is an indicator of 75%, which can be set for civil servants.
The additional part is formed by insurance premiums paid by the enterprise during the employee’s length of service. Contributions are converted into pension points, which are converted into fixed cash amounts upon retirement. As a result, a pensioner who has had the required 42 years of service and insurance contributions can receive up to 80% of the average salary.
Features of the funded part of the pension. In the event of the death of a spouse, the surviving spouse (with young children or over 55–60 years of age) can claim up to 60% of his pension, while orphans (under 21–25 years of age) can claim between 30 and 50% of the deceased's accumulated pension, however, conditions vary depending on the presence of other factors.
Contributions to the pension fund correspond to 16.35%.
Freely employed persons, artisans, traders, and entrepreneurs pay the interest in full. For government employees, the percentage is the same, but half is paid by the enterprise.
It is important to know! Features of the formation of pension payments to orphans
As for length of service, there are many nuances; it is worth examining them in more detail. The required experience is quite long and amounts to 41.6 years. Not everyone has such a period upon reaching 62 years of age. And yet, when does it matter and when does it not?
- If a citizen retires at 62 and has a full length of service, then everything is standard . If the length of service does not reach 41 years and 6 months, a certain percentage is deducted from the amount of the future pension for each missing quarter. The percentage reduction is determined by the number of years and year of birth: 1.625% for those born in 1950, 1.5% for those born in 1951, 1.375% for those born in 1952, and 1.25% for those born in 1952. who was born in 1953.
- When retiring at 67 years of age, length of service is not taken into account , and the citizen has every right to receive a full pension.
- If there is no experience at all or it is very short, upon reaching retirement age the citizen has the right to receive a minimum pension . We will talk about it in more detail below.
Additional social support programs
There are a number of measures aimed at social protection of pensioners. Thus, most of them have significant benefits on tax-related issues. This applies, first of all, to various property payments.
Attention! Also, pensioners receiving a minimum pension have benefits in paying for housing and food.
It should be noted that the conditions for preferential support may vary depending on the specific department of the country.
Do Russian emigrants receive old age payments?
For natural reasons, it is extremely difficult for first-generation emigrants to have 41.5 years of work experience in France. In this regard, many work until 67 years of age and receive a full pension.
In addition, emigrants have the right to retire at the age of 62, but they will receive it taking into account a reduction factor. Actually, the conditions under which Russian emigrants can count on a pension in France are no different from those for persons born in this country.
As for emigrants of retirement age, it should be noted that they can also receive a French pension, but for this they must meet the following criteria:
- age – over 67 years old;
- residence in the country – at least 10 years;
- minimum income – no more than 9,600 euros;
It is important to note that, subject to these conditions, not only pensioners who have received citizenship, but also persons with permanent residence in France can receive French payments.
In addition, Russian emigrants of retirement age have the right to receive a pension through the Pension Fund. This is quite possible while being in France. It should be taken into account that the size of the Russian pension is not comparable with the level of expenses in this country.
The French pension system is considered one of the best in the world, and living here for pensioners is quite comfortable. Despite the fact that the age for going on vacation has been raised, the overall life expectancy here is also quite high, which was the reason for the corresponding decision.
Amount of pension benefits
The pension in France consists of two parts: basic and additional. The first part is calculated solely on the basis of the employee’s data: age of termination of work, insurance coverage, amount of income received and the number of accumulated points.
Additional amounts may only be paid if specific conditions are met. Most often this is the presence of disability, low annual income, maintenance of dependents, and housing problems. The French social support system has developed.
The country has concepts of minimum and maximum amounts of the basic part of a pension benefit. In 2021, these indicators are:
- the minimum pension in France is 636.56 euros/month;
- – 1688.50 euros/month.
The total amount of all benefits paid to each individual pensioner from the state budget should not exceed 3,377 euros per month.
In practice, no one who goes on vacation (due to old age or in accordance with other reasons) receives more than a minimum pension.
For those who do not have enough experience, have had a low salary during their life, or have been diagnosed with a disability, various additional payments are provided. The most common are old age solidarity benefit (ASPA) and disability benefit (ASI).
There are quite a few options for social support, so a potential recipient can use it on the independent website. The service contains a detailed description and criteria for assigning 34 social benefits, not only pension ones.
Due to the additional part, the average pension in France for a person who has worked a sufficient number of years is approximately 1,000 euros per month.
