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> France isn't like the US were people are incentized to build equity for their retirement. This is true but puzzling for one reason: the US pension system (So

> France isn't like the US were people are incentized to build equity for their retirement. This is true but puzzling for one reason: the US pension system (Social Security) pays retirees the same amount of money as the French one. US pensions are not ungenerous compared to Europe. Americans are incentivized by the government to build equity in addition to their government pension, so that they are not wholly dependent on the government pension -- this has been a consistent part of the messaging. I think this takes some pressure off the US pension system, since it creates a joint responsibility between the individual and the government, rather than putting it all on the government to unilaterally solve this problem to everyone's satisfaction. I do understand that it is easier to build equity in the US than Europe, so that probably is a factor in how the population views it.

yodsanklai 4y ago
Yes, an American friend of mine just started to claim its SS pension and it seemed reasonable compared to what we would get, but that's just one data point. And the US is a much richer country with higher wages, so that plays a role. I think, for most French, the retirement model was that we should own a house/apt by the time we retire, and then our pension would be enough to cover our expenses. It seems we're transitioning to a system more akin to the US and it's causing some friction as we're not prepared. Another interesting point to me is that the retirement age is causing protests, but we were essentially screwed when they increased the number of worked years from 36 to 43 - which arguably was a necessary reform. Someone who started to work at 23 (college graduate - HN demographics) won't retire before 66. At that point, my concern isn't so much about working until 66, but having a job at that age. Working in tech, I don't see many people over 50 around me.

yodsanklai 4y ago

Yes, an American friend of mine just started to claim its SS pension and it seemed reasonable compared to what we would get, but that's just one data point. And the US is a much richer country with higher wages, so that plays a role. I think, for most French, the retirement model was that we should own a house/apt by the time we retire, and then our pension would be enough to cover our expenses. It seems we're transitioning to a system more akin to the US and it's causing some friction as we're not prepared. Another interesting point to me is that the retirement age is causing protests, but we were essentially screwed when they increased the number of worked years from 36 to 43 - which arguably was a necessary reform. Someone who started to work at 23 (college graduate - HN demographics) won't retire before 66. At that point, my concern isn't so much about working until 66, but having a job at that age. Working in tech, I don't see many people over 50 around me.