France’s Retirement Risk


 
The working-age population of France has been in decline over recent decades due to its falling fertility rate which is now sub-replacement. And with the elderly living increasingly longer, there has been a decrease in the number of taxpayers available to support the ever-expanding cohort of dependent retirees. This is exacerbated by the fact France has the third highest life expectancy in the EU.

In 1950, almost 6 workers supported each French retiree, alongside their ordinary Government taxes. A century later, it is estimated 2 workers will strain to support each retiree – close to the average across the EU. This is an increasingly unsustainable – and unprecedented – generational tax burden on the French working population.

Number of Workers to each Dependent (65+) in France and across the EU
The working-age population represents those aged 15 to 64. Period: 1950-2050.
France’s Retirement Risk




Note: The EU average is calculated by summing the number of workers to dependents in each EU country and then dividing by the total number of countries (27).


As can be seen in the chart above, France has been at the forefront of this trend. Government attempts to reverse this decline, such as raising the pension age, have proven unpopular. The option of allowing mass immigration to bolster the working population also appears politically unviable.

The cost burden on the French taxpayer is therefore growing unchecked. This is because retirees cost Governments the most out of any age demographic due to expensive pensions and medical and care provisions. Estimates suggest that retirees cost the Government three times that of working-age people in terms of annual spending. The declining number of taxpayers available to support the rising number of expensive-to-maintain, non-working retirees will mean the tax burden on the working population of France could soon become overwhelming.

More for subscribers:  
See more...See more data for France...
See more...See more data for the European Union...
See more...See more 'Number of Workers to Each Elderly Dependent' data...



More perspectives using World Economics data

India Contributed Almost 16% of Global GDP Growth in the Past Decade
India Contributed Almost 16% of Global GDP Growth in the Past Decade
Growth has strongly outperformed the Asia-Pacific region and Emerging Markets in the past 25 years. Real GDP in India has surged by 392% over the last twenty-five years contributing 15.7% of global output growth since 2014. This has pushed India’s share of the world output to over 9.7% making it the third-largest economy by size. In the last ten years, the country’s cumulative annual average real gro...
Africa’s Demographic Dangers
Africa’s Demographic Dangers
While fertility rates fall dramatically across the globe, the rate in most African countries are above – often double – the replacement threshold. Due to this, its population from 1960 to now has increased more than fivefold to 1.5 billion people. It is expected to reach a staggering 2.5 billion in 2050. This will mean that more than a quarter of people on the globe will be African by the middle of ...
Fastest Growing Countries in the Emerging Markets
Fastest Growing Countries in the Emerging Markets
The quality of economic data, and in particular GDP data, is of considerable importance. A number of countries produce GDP data of such poor quality that it is of little value in determining the size and growth of economic activity. World Economics reviews quarterly GDP and Population data quality for 155+ countries. Governance is also of great importance. Research shows that countries with little r...