The French pension system is now facing major challenges.
In a context of an aging population and growing imbalances, companies are increasingly being called upon to support their employees in preparing for retirement. This topic, long perceived as distant, is becoming a strategic HR lever, both in terms of employee retention and employer branding.
How the French Pension System Work
The French system is based on three complementary levels:
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The basic pension scheme (1st pillar): mandatory for all working individuals. Managed by Social Security (CNAV, MSA, SSI…), it guarantees a minimum income for retirees.
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The supplementary pension scheme (2nd pillar): also mandatory. For private-sector employees, this is the AGIRC-ARRCO scheme.
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Additional retirement savings (3rd pillar): this is optional. It includes plans such as the individual PER, the PERCO, and notably the PERO (Plan d’Épargne Retraite Obligatoire).
A Model Under Pressure
Originally based on intergenerational solidarity, the French system is now weakened by several demographic and economic trends:
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In 1950, there were 4 active workers for every 1 retiree. By 2050, this ratio will drop to 1.4 to 1.
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Life expectancy continues to rise, now averaging over 85 years for women.
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The average pension amount remains limited, around €1,531 gross per month.
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Executives are particularly affected: their replacement rate averages 50%. In other words, an executive will receive around half of their final salary in retirement. This drop in income often comes with new expenses: individual health insurance, personal protection plans, coverage in case of dependency, etc.
Retirement: A Full-Fledged HR Issue
Given these realities, retirement planning is becoming a strategic issue for companies. Several trends are emerging:
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Employees are thinking about retirement earlier, increasingly aware of the limitations of the public system.
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Employers play a key role in providing information, financial education, and long-term support.
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Collective retirement savings solutions, such as the PERO, are perceived as valuable social benefits, enhancing both employer appeal and employee retention.
The MIA Assurances Approach
At MIA Assurances, we support companies looking to anticipate and structure their retirement strategy. We offer simple, efficient and compliant solutions, tailored to today’s economic, human and social challenges.