French President Nicolas Sarkozy has recently stirred emotions by discussing delaying the minimum retirement age in France, and/or extending retirement contributions. Here’s a demand by one of France’s many workers unions:
La retraite à 60 ans et à taux plein, sans augmentation, ni allongement de la durée des cotisations.
Translation: Complete retirement at 60 years old, without raising contributions or extending the contribution period.
Let’s take the example of Japan, a country with one of the longest life expectancies on the planet, and a good social medicine program. You might think that these are good things, and indeed they are, but combined they produce disastrous results for Japan’s economy: with more and more people living longer lives in retirement, the state bears a bigger and bigger financial burden to care for them.
With French unions short-sightedly demanding a freeze on the retirement age, they are conscripting themselves to the same fate as Japan’s system – radical overhaul or complete bankruptcy. It would be much easier now to adopt sensible changes to France’s retirement system than wait for disaster.