Pension System

Pension Payments
As of 2009, if employees work for 40 years, their pension upon retirement will be 50% of their salary. Thoughout their career, employees' salaries are docked a small percentage to contribute to their pension plan. If employees work less than 40 years or do not contribute to their pension plan during any of these years, their pension is smaller. For each year they miss, employees lose 5% of their pension total. For example, if an employee misses one year of employment, they recieve 45% of their salary instead of 50%.

Retirement Age
In October 2010, France increased the retirement age from 60 to 62 to receive the minimum pension available, and from 65 to 67 to receive a full pension. In order to receive a pension at this age, retirees must not have worked or recieved a credit for every year.

Care Credits
France gives employees credit for some years of parental leave they may take throughout their career. Mothers and fathers are entitled to two years of pension insurance per child. 

                                     

Changes for the Future
At the time this website was published, France’s national government had just passed new legislation to reform the pension system. The change was controversial and sparked protests across the country. Current information about France’s changes to their pension system can be found here.

What would your pension be in France?
Use these equations as a guide to calculate your pension.
Did you work 40 full years or take no more than two years off of work per child you raised?
If so: (salary) X (50%)= pension payout    

If not: (40-number of years worked) X (5%)= your adjusted pension rate
           (adjusted pension rate) X (salary)= your pension

If your salary is not in Euros, multiply your total by the exchange rate to determine how far your pension would get you in France.
As of Decemeber 2010, $1= €0.77.

References:
Frericks, Patricia, Robert Maier and Willibrord de Graaf. 2008. "Male Norms and Female Adjustments: The Influence of Care Credits on Gender Pension Gaps in France and Germany." European Societies 10(1):97-119.