Ex-French President Hollande proposes 63 as retirement age, gradual increase in contribution period

Former French President François Hollande has put forth a proposal to reform the pension system, suggesting a legal retirement age of 63 by January 1, 2028. This stance diverges from the Socialist Party's aim to revert to the age of 62.

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The pension file will inevitably return to the table.

Hollande's plan also includes a gradual extension of the contribution period, tied to increases in life expectancy, through a mechanism managed by social partners. To finance a reduction in social contributions, he proposes a new tax targeting a portion of large inheritances and a gradual increase in the standard VAT rate from 20% to 24%.

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a contribution that would affect part of the large inheritances

Further details of his proposal, outlined in his upcoming book "Unir. Nouveau monde, nouvelle gauche," include limiting pension indexation to 1% for five years, which he claims would yield the same financial benefit as raising the retirement age by one year. He also advocates for incorporating a capitalization component, overseen by social partners.

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gradually extend the contribution period as life expectancy evolves

In addition to pension reforms, Hollande suggests reducing the VAT rate on energy, fuel, and essential food products from 5.5% to 0%. He also aims to bring net salaries closer to gross salaries by lowering employee contributions, funded by the aforementioned tax measures.

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limit the indexation of pensions to 1% for five years