Funded pensions: a good German example?
To address the aging population, Édouard Philippe is considering a new pension measure. He would like to introduce a capitalization component, as our German neighbors do. Here's an explanation.
Former Prime Minister and declared presidential candidate Édouard Philippe was invited to France Inter to discuss pensions. This was an opportunity for him to revisit a reform he would like to see in the coming years.
He explains: " It's about setting up a capitalization system that is not intended to completely replace the distribution system, but which must complement the distribution system. 10, 15, 20%. In Germany, it's around 15%. So we can go further. In my opinion, we can reach 15%. It will take time, but it's essential. It will give back a little individual freedom to those who want to retire, and that's valuable, and it will help guarantee the financing of pensions. "
However, this measure is far from unanimous. This is because investments have high costs, complex management, and low profitability.
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