Although it’s a marginal gain, it’s the total opposite of retirees in most other nations; American pensioners earn about a sixth less in relative income compared to employed adults, U.K. retirees bring in about a fifth less, and retired Australians face the largest disparity, with a third less in income.
However, the report notes that this is no new fad. In the five decades between 1970 and 2020, the cumulative increase in median income for working-aged French citizens between the ages of 18 and 64 rose by about 100%, while it increased by more than 160% for the nation’s retirees.
Pensioners’ average yearly income is the gross earnings on which contributions have been paid, which is calculated based on the person’s 25 top-earning years. However, it should be noted that retirees must work for at least 42 years to receive the country’s full state pension.
And the country has continued to spend more on its pensioners; France has increased its share of GDP spent on old-age benefits and health/care by about 2.9% since 2001, according to the FT analysis. By comparison, its peer average rested at just over 1.5%.
Plus, it takes longer to get the cash; Americans can’t access their Social Security retirement benefits until around 66 or 67, years later than their French counterparts.
The U.S.’s relatively undesirable pension plans and sky-high living costs have forced Americans to work longer out of fear of running out of their savings.
