The new cost of pension reform
What will be the financial cost of reforming the pension system, the cost of this new text, resulting from the joint committee consisting of seven senators and seven deputies, where this version will be applied, if the reform goes further? at its end.
One of the main objectives demonstrated by the government in this reform is to balance the pay-as-you-go pension system. The Pension Steering Board scenario, on which the executive is based, projects a deficit of around €13.5 billion in 2030.
At the same time, pension reform was to bring in 17.7 billion, on a similar horizon, in 2030. Once the system is in balance, 4.2 billion theoretically remains. A cat that was to be used to fund compensatory measures which are supposed to mitigate, very slightly, the effect of extending the contribution period, and lowering the statutory retirement age.
However, the list of compensation has grown since then. From the facilities offered to all those who started work early; They will be able to retire before the legal retirement age. This scheme is called the long career, and it was eventually extended to those who started working before the age of 21. It was 20 years in the beginning.
Another measure that costs a little money: this 5% surcharge on pensions awarded to mothers, provided they are all 63. – A pension supplement that compensates, according to the executive authority, for the loss of part of the allowance for birthplaces obtained prior to this reform.
How much is the bill now and how is it funded?
These modifications cost several hundred million euros. how much exactly? It’s hard to say, there are many estimates circulating. 700 million is the figure put forward by the executive branch, and it is funded ideally according to the government, by sleight of hand with an increase in employer contributions for old age, offset by a decrease in contributions related to work accidents, above all not to increase the cost of labor. Added to this are the fee increases over traditional terminations.
Wonderful theory. In practice, according to a very good connoisseur on file, it is too complicated to make macroeconomic forecasts on the estimated cost of such a reform in seven years, on such a sensitive, complex and personal topic as retirement.