Social security deficit grows in France

Frédéric Bizard, in an interview with Charlie Hebdo, discussed the growing social security deficit in France, which he attributes to reductions in social contributions on low wages, leading to lower revenues for the system.

Economic growth forecast downgraded

Bizard highlighted that the core issue lies in the revised forecast of economic growth, which has been cut from 1% to 0.4%, a rate deemed insufficient to address rising expenses, which are estimated at 2.5 to 3%.

Health sector drives the deficit

He noted that France's social model is reaching its limits due to its inadaptability to an aging population, with the health sector being the most significant contributor to the deficit, accounting for nearly 75% of the social security deficit in 2025.

Social protection system faces choices

A social protection system must protect individuals against risks, either by ensuring better protection to reduce the risks of illness or dependency or by maintaining an inefficient model where expenses grow faster than revenues.

Funds used to repay past deficits

Part of the social levies is used to reimburse past deficits through the Social Debt Amortization Fund (Cades), funded by levies on the incomes of French citizens, such as the CSG and CRDS.

Impact on retirees and benefits

The main consequence of this deficit is visible on payslips, where 0.5% of CRDS is paid solely to reimburse the debt rather than to fund health or retirement benefits.

Funding shift and rising costs

In 2024, the Cades was supposed to disappear, with its contributions being redirected to benefits for elderly dependent people, notably for home services. However, efforts are being made to transfer as much of this funding as possible to households or private insurers.

Health supplements to rise sharply

Health supplements are expected to increase by 8.3% in 2027, or between 130 and 140 euros per retiree. An impact study on the application of the 2027 Social Security Financing Bill (PLFSS) indicates that the quality of life for 9 million middle-class elderly people will decrease.

Degradation of protection feared

Bizard emphasized that returning to balance would require significant degradation in the protection of retirees, access to care, and funding for dependency, which cannot be passed without strong political orientation.

System sustainability at risk

He warned that the deficit threatens the sustainability of the social security system and the ability to mobilize additional resources to better protect the French population. The aging population and increasing demand for social services will have consequences on the most vulnerable, as the system will no longer be able to address social risks related to illness, dependency, and precarity.