In April 2023, France’s national statistics office, INSEE, released figures showing that France has 30 times more centenarians than in 1975. With the odds of reaching 100 increasing, a solid retirement plan is essential for everyone.
30-fold increase in centenarians in France
France has been in the news recently with its population up in arms at Macron forcing through legislation to raise the retirement age from 62 to 64.
Men in France live to 79 on average, and women to 85. But as the recently released figures from INSEE show, increasing numbers of French retirees (mostly women) are reaching the grand old age of 100.
In 2023, there are 30,000 centenarians living in France, up from just 1,000 in 1975. And INSEE’s projections show that by 2040 the country will have 76,000 centenarians, possibly as many as 120,000.
France’s pension ages were set when life expectancy was far lower. With a rapidly ageing population, pension reform is unavoidable. Otherwise, as Macron has stated, ‘… we’ll be financing our retirement system on credit’.
Ageing populations put state pensions at risk
Of course, ageing populations and stretched state coffers are not problems limited to France. Governments across the world are facing the same dilemmas and often raising the pension age is viewed as an inevitable solution.
In the UK, the Institute for Fiscal Studies (IFS) has warned that the state pension age may need to rise to 70 by 2050, others are questioning whether state pensions will exist at all in the future.
None of this is good news for ordinary workers hoping to give up work in their early 60s with enough money to see them comfortably through retirement.
For choice in retirement, get planning NOW
The bottom line is that relying on a state pension means that you will hand over the choice of when you retire to the state. And the goalposts can change swiftly and with little notice – as many British women born in the 1950s have experienced.
In addition, if the state pension is the sum of your retirement income, you won’t be spending your retirement fulfilling long-held dreams. Instead you’ll be subsisting and possibly having to make tough choices, like whether to eat or heat your home in winter.
The only way to ensure that YOU control when and how you retire is to make your own pension provision with a concrete financial plan to save and invest that is aligned with your retirement goals.
If you want to retire at 60 and you are one of the lucky ones to reach 100, that means supporting yourself for four decades or more! Which should galvanise you into action if you are not already saving for retirement.
Whether you are from Generation Z, at the beginning of your career, or Generation X and fast approaching retirement, taking action now will improve your retirement prospects. Of course, it’s easier if you have many years left to work but it’s never too late to make a difference.
If you would like to start saving and investing for your retirement but you don’t know where to start, our professional financial advisers based across Asia are ready and waiting for your call. Contact us today and take positive action towards a brighter future in retirement. Possibly four decades of it!