Abstract
The French pension system, which was built in 1945 on the pay-as-you-go option, is a strong element of social cohesion allowing pensioners to achieve today an average living standard comparable to that of the working population. As in most developed countries, this system is faced with prospects of financial imbalance due to demographic changes. However, contrary to the image that is at times conveyed, and despite the complexity stemming from an array of plans, since the early 1990s France has undertaken in-depth reforms of its system. There was a broad consensus in France on the major orientations of the last reform (2003) which involved reaffirming the payas-you-go option; ensuring a high level of retirement income by extending the length of labour force participation; preserving equity and the spirit of social justice of French pension plans; allowing each individual to build up his or her own pension savings by granting more flexibility and freedom of choice; and, guaranteeing retirement funding. This article succinctly describes the organization of the French system and presents the current developments and longterm prospects.
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