France's pension gap between men and women widens due to current policies, prompting a proposed reform to replace the bonus system with a flat rate.
Pension gap between men and women in France
In France, retired women receive an average pension of 1,383 euros, compared to 2,186 euros for retired men. This 37% difference is largely due to lower average salaries and more fragmented careers for women.Current bonus system favors men
The existing "large family" bonus gives a 10% increase on monthly pensions for each parent with three or more children, with an extra 5% for each additional child. This system disproportionately benefits men, as men typically have higher pensions.Impact of the bonus on men and women
A man with an average pension of 2,200 euros would receive a 220 euro increase from the bonus, while a woman with a 1,350 euro pension would only receive 135 euros. Men capture two-thirds of the 10 billion euros spent annually on the bonus, according to Le Parisien.Proposed pension reform in France
The French government plans to replace the 10% bonus with a flat rate in its draft law on the finances of the Social Security for 2027, specifically in article 34. The reform aims to standardize pension increases for children and benefit modest pensions, which are mostly received by women.Details of the proposed flat rate
The exact flat rate has not been set, but a report suggested 125 euros for the general regime pensions. This rate could be supplemented for retirees with complementary pensions. The government estimates this reform could save about 1.1 billion euros in the long term.Reform applies to future retirees only
The reform would apply only to future retirees starting from July 1, 2027, leaving current retirees unaffected. If the flat rate of 125 euros is implemented, individuals receiving less than 1,250 euros would benefit, including many single mothers and widows receiving survivor's pensions.Opposition to the reform from some sectors
Those with higher pensions would see a reduction, leading to opposition from sectors like the military, where senior officers, predominantly men, are concerned about potential future pension reductions of 10 to 15%.
