Proposed Pension Plan Disregarding Minimum Age: CFDT's Idea
Demystifying the Future of Retirement: Customized vs. Distribution-Based Regimes
As the Orientation Council for Retirement (COR) suggests a potential delay in the legal retirement age due to a larger deficit than anticipated by 2070, the Confederation Française Démocratique du Travail (CFDT) champions for a "customized regime," eschewing any fixed legal age.
Recently, the COR proposed a further delay in the legal retirement age, pushing it up to 66.5 years by 2070. On Franceinfo, the general secretary of the CFDT, Marylise Léon, advocated for such a customized regime. In response to questions regarding a retirement system based on capitalization, Marylise Léon acknowledged the importance of discussing the topic, while reaffirming the CFDT's commitment to the system based on distribution.
"There's no magical solution," she began, clarifying that while the CFDT isn't averse to the idea of capitalization, they don't believe it's the answer to all problems. The focus should rather be on savings and ensuring access to savings for everyone, she asserted.
"Capitalization mainly benefits workers in large companies," Marylise Léon stated, emphasizing the need to explore options for expanding access. She stressed the CFDT's support for the distribution-based regime but acknowledged the need for some adjustments, with a touch of capitalization if necessary.
However, the CFDT's proposed solutions extend beyond mere tweaks. According to Marylise Léon, there should be a greater emphasis on taking into account physically demanding jobs, the situation of women, and the question of the legal age. She believes that managing the retirement system more effectively is key, rather than repeatedly reforming it every five years.
"For the CFDT, managing a regime of the future means a regime without a legal age," she asserted, promoting the idea of a customized regime. "It's a matter of social justice. We need to standardize the regime because today there are too many disparities," she reiterated.
The Era of Personalized Retirement
A customized retirement regime would offer more flexibility and adaptability compared to traditional distribution-based systems. For instance, without a mandatory retirement age, individuals could choose when to retire based on their health, financial situation, or personal preferences. The regime might also enable workers to adjust their contribution rates or investment strategies based on their retirement goals.
Clearly, the future of retirement appears to be trending towards greater personalization. While details about the CFDT's proposed regime remain sketchy, one thing is certain: the status quo is set to change.
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- "In the realm of finance and general-news, the Confederation Française Démocratique du Travail (CFDT) advocates for a shift towards personalized retirement regimes, which could revolutionize the business of retirement planning."
- "The future of retirement savings plans (PER) might be heavily influenced by politics, as the CFDT pushes for a customized regime, emphasizing social justice and minimizing disparities, over traditional distribution-based systems."
