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Conclusions of report by French Planning Superintendent Jean-Michel Charpin p France counts 4 retirees for 10 active ones today.
p By 2040 this ratio will have dropped to 7 retirees for every 10 active ones.
p At the 2040 figures, pensions would represent between 15% and 17% of French GDP at current estimates, versus 12% today.
p If unemployment is at 9% in France (current rate?) in 2040 then the social security system in France would bear a defecit of E61bn.
p This defecit would still be e53bn if France had unemployment levels of 3% in 2040.
p To plug the gap social security retirement contributions should rise from 8.6% today to 11.2% of wages, or the minimum retirement age should be raised from the present lvel of 60 to 65 years.
Suggestions made by French Deputy Minister Jerome Cahuzac p Creation of a new long term savings product for the purposes of retirement (Produit d'Epargne á Long Terme) to meet the increasing need for a complimentary system to French social security and complimentary regimes and boost French investment and business sectors.
Suggested contribution levels for such a plan have been put at 6% of salary, with a proposed tax ceiling of between 20-25% and an absolute savings limit of F1000 per month.
p Ensure any savings plan is agreed between social partners and employees, and that these parties have full control of their implementation and management.
p Recapture the 40% of capitalisation in the Paris Bourse which is invested abroad today, partly as a result of large pension funds in France, by ensuring French companies are increasingly 'owned' by French citizens, as shareholders.
p Revise current tax laws to promote the long term savings initiative.
p Reconsider some of the aspects of 1997's 'Loi Thomas' (Titled PERs) which were made law, notably the possibility of a 'syphon' from social security of companies accepting retirement contributions from employees. Also, the lack of 'individual' control on investments and the 30% tax imposed on share investments in retirement funds - preventing individuals from deciding when and how they can collect their pension. p Link any investment initiative to a reduction of France's national debt.

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