Pensioners earn more than working adults in France
In a rare economic twist, retirees in France are officially out-earning their working-age peers. The average French pensioner over 65 now makes about €1,626 ($1,926) per month—roughly 2% more than the country’s average employed adult, according to a Financial Times analysis of Luxembourg Income Study data. This contrasts sharply with countries like the U.S., U.K., and Australia, where retirees earn substantially less than workers.
From 1970 to 2020, the median income of French workers rose 100%, while retirees saw a 160% gain. This long-term trend, combined with France’s relatively low retirement age and robust pension policies, has made retirement not only viable but financially advantageous for millions.
France’s pension system is among the world’s most generous
French retirees benefit from a high pension replacement rate—about 74% compared to 50% in the U.S.—and can retire earlier. The current system allows full pension access at age 62, calculated from an average of the top 25 earning years, provided the worker has contributed for 42 years.
The government has consistently prioritized retirement support, spending roughly 14% of its GDP on public pensions, double that of the U.S. This investment helps retirees maintain a comfortable lifestyle without returning to the workforce, unlike many of their American counterparts.
U.S. retirees face delayed benefits and higher pressure
In contrast, many American retirees are struggling. Over 20 million report concerns about running out of money. According to recent surveys, nearly 20% say they are “struggling” or “living the nightmare,” while only 5% feel financially secure in retirement.
With Social Security access beginning at 66 or 67, high living costs, and lower replacement rates, Americans are often forced to work into their 70s. About 60% of U.S. retirees say they wish they had a side income. The financial burden of retirement in the U.S. remains a growing concern.
France considers raising retirement age amid cost pressure
Despite the current benefits, change may be on the horizon. In 2023, the French government proposed raising the retirement age from 62 to 64 by 2030, sparking widespread protests. Funding pensions has become so costly that in 2024, related expenses consumed one-sixth of the Ministry of Defense’s budget.
Still, for now, French retirees continue to enjoy an enviable financial edge, with a system that prioritizes post-work dignity and comfort—something many other nations are still struggling to provide.
