French presidential candidate Bruno Retailleau, leader of the Republicans, outlined a proposed pension reform during a televised appearance on LCI on September 22. The reform suggests a minimum retirement age of 63 years, with a full pension available at 65 years. It also introduces a capitalization component for young workers, which would involve investing a portion of their contributions into a separate fund. Retailleau explained that retiring at 63 would carry a "7% annual penalty," while the full pension would be available at 65 instead of the current 67. This would apply even if individuals had not completed all their required years of contributions, known as "quarters." Retailleau mentioned that the full pension retirement age of 65 years could change in the future, potentially being linked to life expectancy. If people live longer, the retirement age might rise accordingly. However, the minimum retirement age of 63 would remain fixed. The exact mechanism for adjusting the retirement age based on life expectancy has not yet been finalized by Retailleau's team. The reform would take into account factors such as disability, illness, and the physical demands of certain jobs, following existing provisions. Retailleau plans to consult with social partners to identify the professions most affected by the changes. Workers who started their careers early and have complete records could retire at full pension at 63, but they would be encouraged to continue working until 65 by exempting them from certain contributions. Retailleau stated that his reform aims to "save the pay-as-you-go pension system," which relies on current workers funding retirees, and would lead to "40 billion euros in savings cumulatively over five years." His team described the reform as demanding and responsible, highlighting its focus on workers who began careers early and those with fragmented work histories, especially women, who currently have to work until 67 to retire at full pension. Retailleau also proposed a capitalization component for young workers, with a yield of at least 4%. He emphasized that this component is crucial for young workers and for French companies, to avoid the risk of foreign investment from American or other international funds. This capitalization pillar would not apply to current retirees but would represent approximately 25 to 30% of the pensions for young workers entering the labor market. One possible way to fund this component is a 1% contribution of gross salary, shared between employees and employers.