France's New Retirement Policy



France's New Retirement Policy

Introduction

The current study is based on the new early retirement plan and its impact on various aspects of the economic conditions of France. France is among the largest economies of the world and second largest economy in Europe. France is also one of the most developed countries of the world. However, when France new Socialist government shifted the retirement age from 62 to 60 years old, a wave of protest and condemnation took place all over the country (Sayare, 2012). Recently, its euro zone exports has been declining and industry is losing 60,000 jobs every year from past few decades. According to IMF, France has the highest life expectancy but one of the earliest retirement age which seems to be a costly decision considering the economic conditions of the country (Erlanger, 2010).

France's new retirement policy has negative effects on country's economy. The average life expectancy is 80 years and workers who retired at the age of 60 are dependent on government expenses (Erlanger, 2010). Considering the global economic recession and unemployment, people work just for a time pass and enjoy their after retirement years fully by taking advantage of government checks. As a matter of fact that people after the age of 60 face health issues and problems which involved high health care expenses (Hariati, 2007). These high expenses and global recession let the government to face more economic crisis and financial crisis in future.

Welfare and pension require heavy funding and expenditures which the government has to pay to support workers with welfare as well as pension for many years which ultimately affect country's economy to a great deal. Government is already in a global recession involving high unemployment rate and budget deficit but the new retirement reform will add more burdens on the country's expenditures. The new policy also entails the pension plan for those who started working at the age of 18 or 19. This pension plan led young workers to start paying to the pension program for 40 years. This increased the number of retirements every year and thus affects the financial position of the country (Rumberg, 2012).

In this economic situation, families cannot survive because of high unemployment rate in the country. It is difficult to get a good job but the new retirement plan will enable the young people to start working at the age of 18 and support their retired parents and children. Apart from this, old age people will be able to take care of their families and children with their early retirement and government support (Desmette & Gaillard, 2008).

France is concerned with healthy life and make sure that it takes major steps in improving health of its citizens who are at the age of retirement. The early retirement plan seems to be a social justice to those who cannot afford their health treatments and are facing financial crisis. Apart from high unemployment rate, people are unable to support their families' health care and ...