PENSIONERS EARN MORE THAN EMPLOYEES IN THIS EUROPEAN COUNTRY! Here’s How the State Made It Possible

In France, pensioners over the age of 65 receive an average of about €1,626 per month, which is about two percent more than the average salary of actively employed citizens, according to a Financial Times analysis based on data from the Luxembourg Income Study.

This situation is the result of a generous pension system. France allocates about 14% of its GDP to pensions, while the replacement rate (the ratio of pension to last salary) is around 74%.

— “For comparison, pensioners in the USA earn about 16% less than the actively employed, with nearly a fifth ‘struggling’ with the cost of living, while only 5% feel they are ‘living their dream’,” the analysis states.

The Situation in the US

The United States, for example, allocates nearly half as much—just 7% of its GDP to pensions—and the replacement rate is only 50%.

While such systems create pressure on public finances, the political systems in France and the UK protect pensioners from fiscal adjustments. In the UK, the “triple lock” system guarantees that pensions increase faster than wages, inflation, or 2.5% annually. This has significantly improved the standard of living for pensioners but has simultaneously reduced funds for infrastructure projects and social spending.

In addition to enjoying high incomes, French pensioners can retire earlier than in most other countries due to a lower age threshold.

Source: Kurir , Photo: Media