Comparing pension systems in Europe is always dangerous. Emmanuel Macron tried it at the end of March, defending the reform of the pension system, which brought the retirement age back to 64 and whose law was promulgated on April 14. A difficult undertaking, because the rules vary from country to country, explained political scientist Bruno Palier. On Facebook, a viral post that has been shared more than 40,000 times is also trying to do the same, using dated or truncated dates.
Looking at this table, we can conclude that our European neighbors contribute fewer years than the French (43 years indicated in the table, to be understood in the general sense, where pensions also depend on the length of insurance and the length of insurance depend on age of entry into the plan). According to this table, the Germans would only contribute 35 years, the Spaniards 37, Greece, Portugal and Hungary 40 years, and the Italians 42 years.
INCORRECT
However, these data are inaccurate or do not take into account the specific rules of pension systems. A January 2022 Pensions Guidance Council (COR) working paper addressed the issue of retirement ages and duration in eight European countries, Canada and Japan.
The table posted on Facebook compares legal retirement age and contribution years. Two interesting entries, but given the wide disparities between pension systems, points need to be clarified. The CoR thus explains that the statutory retirement age allows international comparisons “with relatively little clarity”, but “does not take actual retirement behavior into account”. Other indicators are therefore usually retained, such as the effective age at which entitlements are paid or at the end of the labor market.
At what age do we retire?
Regarding the legal age for opening entitlements, there are also several possible variables depending on the country: the age at which pension entitlements can be claimed, the age at which a full-rate old-age pension can be drawn, the age at which a bonus is activated or even the age of automatic retirement. In addition, there are options for early retirement under certain conditions such as the length of insurance or employment, the age at the start of employment or the type of work performed.
Adopted legal texts also lead to a gradual decline in the opening of rights by 2050, for example in Italy. The CoR has included this information in the table below.
Screenshot of the Pension Guidance Council chart on the unconditional age limits for opening entitlements on 1 January 2022 and beyond (note that this table does not take into account the reform that has since been adopted in France). – Screenshot/COR
Incorrect data and comparison
In the social networks, the presented table does not take into account these peculiarities and even incorrectly compares figures. In Germany you have to have paid in for 45 years in order to be able to leave the country in full. From the age of 63, it is possible to leave with only 35 years of contributions, as shown in the table, but the pension will then be reduced. The unconditional eligibility age is 65 years and ten months (not 62).
In France, with the promulgation of the law, the legal age will gradually increase by 3 months per year of birth from September 1, 2023, to reach the target of 64 years in 2030. The full age limit remains at 43 years of contribution years. For long careers, it will be possible to retire slightly earlier depending on year of birth, age at entry into the labor market and quarters paid in (the CFDT lists it in a table here).
Older entry age but fewer years of contributions in Italy and Spain
In Italy, the system is a bit more complex: the unconditional exit age is 67 (and not 66), but it is possible to leave early regardless of age, from 42 years and 10 months contribution for men and 41 years and 10 months for women. There are also a number of early retirement schemes with specific criteria. The retirement age will gradually increase to 69 by 2050.
In Spain, too, the retirement age will be gradually raised to 67 in 2027 under a 2011 reform. If the contribution period is less than 37 years and nine months, the entitlement will be fixed at 66 years and four months in 2023. states the Spanish Ministry of Labor on its website. Earlier exit at age 65 is possible if the person has contributed for 37 years and nine months or more. The left-wing government reform passed in March 2023, which did not trigger any protests, had no impact on the retirement age. In particular, higher incomes should contribute more to the financial balance of the system.