To justify raising the legal retirement age, we often refer to what other European countries are doing, facing the same financial balance problems in their systems as we do. But be careful with the comparisons. In particular, because our legal retirement age is decisive, which is not necessarily the case elsewhere.
Except in special cases, in France, employees cannot claim their pension rights before, for the time being, their 62nd birthday. And as of this year, it will be later, depending on the rate of decline of the age of majority that still must be validated by parliament.
In Greece, the legal age varies according to the number of years of contribution
While in most other European countries, the age presented as legal or normal admits many exceptions to the rule. In Greece, for example, two exit ages coexist: o 67 years, for employees (for example, a mother) who have contributed for only 15 years, o 62 years for those who have contributed for at least 40 years.
However, a worker can exercise his rights before reaching the age of 62 if he agrees to receive a lower pension than the one that would correspond to him if he left at the normal age. He can, for example, leave at age 60 on the simple condition of having contributed for 35 years.
In Germany, you can leave before the legal age, subject to a reduction in your pension
This principle of early retirement with a reduced pension also exists in Germany. It is often pointed out that on the other side of the Rhine, employees will gradually have to work longer to be entitled to a full pension. The normal retirement age will be increased from 65 to 67 years.
But what we forget to say is that a worker who has contributed for 35 years has the right to leave before the legal age. On condition, of course, of being able to afford it financially, since his pension will then be reduced by 3.6% per missing year.
Early departures for long races are easy in Belgium and Luxembourg
In other countries, leaving before the normal age is also possible when you have contributed for longer than the average. Like what is called in France the long-career system, but with less restrictive rules. In Belgium, for example, the legal age will increase progressively from 65 to 67 years, that is to say, well above what is foreseen in the pension reform presented on Tuesday by Elisabeth Borne.
That being said, at the same time, the Belgian system allows employees who started working young to leave well before the legal age. If they started working at age 16, they can claim their rights when they turn 60. And it will be at 63, if they started working at 21. Another example of flexibility, in Luxembourg, the “legal” age is 65, but you can retire early at 57 if you have contributed for 40 years.
In Portugal, the evolution of the age of majority depends on life expectancy
Finally, there are some countries that modify the legal retirement age based on life expectancy. Portugal is one of them. The legal retirement age can thus vary each year according to the evolution of life expectancy at 65 years (which is the indicator validated by the Portuguese legislator). And if, as is the case this year, life expectancy falls, the legal retirement age is brought forward.
In 2022 it had been set at 66 years and 7 months and this year it has risen to 66 years and 3 months. With this very flexible approach, which financially balances the system, every year those who retire know that they won’t be hurt as badly as those who left two or three years before than those who will leave five years later.
Thus, the average duration of receiving the pension will be the same regardless of the pensioner’s date of birth. And Portugal is not the only one doing it. Sweden and the Netherlands, for example, follow a comparable logic.
Source: BFM TV
