By Stéphane Hamayon and Florence Legros
Less than three years after the official retirement age in France was raised in 2010-2011, a new pension reform was passed in early 2014.
This reform is described by its promoters as “sustainable and equitable”. However, only a few months after it passed, if we once again review the mid- and long-term balance of the pension system, we would have to conclude that this subject needs another look (see our article in the Revue de l’OFCE, no. 137, 2014). The suspected imbalance stems from a gap between the assumptions that prevailed in 2014 when the reform passed and the actual development of critical macroeconomic variables such as unemployment and productivity growth. Continue reading “The 2013 pension reform: the implicit contribution of pensioners’ purchasing power”