Gulf between French and UK pensions
French retirees are uniquely well-off compared to average earnings says a report
France’s pensioners aged over 65 earn more than the average national wage. In addition, the OECD found they have the highest life expectancy on reaching retirement (25 years).
And while the average retirement age will rise to 64 (from 61.7) in coming decades, it is still expected to be one-and-a-half years lower than the OECD average around mid-century.
At the same time the average paying-in time is rising (it will be 43 for people born in 1973 or later, which will be around the European average).
The typical ‘replacement rate’ (percentage of current income that would be covered by a pension at retirement) in the private sector is 74% – higher than the EU average of 71% and the OECD average of 63%.
The same survey found that pensioners in the UK were not so well-off, with 18.5% of those aged 75 or over living in relative poverty (less than half of national median household income).
UK pensioners receive 82.6% of national average incomes, below the OECD average 87.6%.
They can also expect the lowest OECD replacement rates (an average 29%, though low earners can expect 52%).
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Even so, it should be borne in mind that average salaries tend to be higher in the UK and many Britons also have private pensions. In addition, comparing UK and French pensions is difficult, as the former are based on a set amount for all who paid in for at least 35 years while French ones vary on how much was paid in social charges on wages, so are higher for higher earners.
Both countries also operate top-up benefits for poor pensioners, as well as other benefits such as for housing which may be more generous in the UK.
