this post was submitted on 12 Oct 2023
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[–] SubArcticTundra@lemmy.ml 3 points 1 year ago* (last edited 1 year ago) (2 children)

What model of financing do you have for state pensions in France? I live in Czechia and they get paid out of the national budget every year, so I thought it would be a higher percentage. But the govt wants to change it to a fund-based pension because apparently the current model os demographically unsustainable.

[–] Ziggurat@sh.itjust.works 3 points 1 year ago (1 children)

It's part of the social security, so funded through Tax (well it's not called a tax, but in the end it's a government budget).

The main 'private counterpart' is people having extra real estate investment, like you buy a rental apartment in your 40's and 20 years latter it's paid and you get the rent as an supplemental income. To my understanding some real estate developer are borderline scammy with small individual investor

There is indeed some lobbying from insurance company to more "private pension fund" but it's not (yet) that popular/systematic (Many person with disposable incomes do have a pension fund, but usually a small amount)

[–] SubArcticTundra@lemmy.ml 2 points 1 year ago

It's part of the social security, so funded through Tax

Ahh I see. Do you think that's why Macron wants to change it? Because over here they're afraid that if it stays tax-based, there aren't going to be enough working age people to pay all the pensioners' pensions in a couple of decades

[–] Camus@jlai.lu 2 points 1 year ago

France is also paid from national budget IIRC