The Court of Auditors notes a lack of fairness in the pension system

Following a much-anticipated first report on the financial situation of the pension system intended to shed light on what had been presented as a "conclave" between the social partners, the Court of Auditors had focused on the thorny issues of employment and competitiveness.

The report submitted to the government on Thursday was welcomed by the social partners still present in the former conclave, who each found validation of their arguments and proposals for reforming the pension system.

Generally speaking, the Court underlines the importance of further increasing the employment rate in France, which remains lower than that of neighboring countries, particularly among senior citizens - a finding that can only satisfy employers.

But she also notes that the increase in the employment rate observed in recent years, thanks in particular to pension reforms, has been accompanied by "inequity" - providing fuel for the fire of unions opposed to the 2023 reform.

"For workers, people with health problems and women, the increase in retirement age has resulted more in an increase in the time spent 'neither in employment nor in retirement'," that is, unemployed, disabled or sick, notes the Court.

Who also notes that the long careers system has effects "concentrated on people who receive an average pension" (from the 5th to the 8th pension decile), with the most modest retirees in the first four deciles representing only 13% of the beneficiaries of the system.

The life expectancy gap at 65 between managers and workers "was two years for women and three years for men in 2020-2022," the Court also points out.

"Equity within a single generation is not guaranteed in the pension system, and this issue must remain at the heart of discussions" on the future of this system, Mr. Moscovici indicated while presenting the report to the press.

"There is one proposal that interests me a lot, which is the idea of ​​controlling the system based on the age remaining after retirement," so that this age is the same for everyone, he explained.

The Court also considers that indexing pensions to inflation "does not appear to be the most appropriate way to ensure a lasting balance in the pension system", judging that "indexing to salaries would promote greater intergenerational fairness".

Italy and Germany, for example, "revalue pensions based on salary developments by applying a sustainability factor" to "adjust" pensions to the "capacity of workers to finance them," the Court notes.

"Impossible status quo"

Automatic indexation of pensions to inflation each year is a recurring topic of debate.

Last autumn, the Barnier government attempted to limit this indexation in the 2025 Social Security budget, but the Bayrou government ultimately abandoned this measure.

On a macroeconomic level, the Court considers that the impact of the pension system on French economic competitiveness is "ambivalent".

The exemptions from social security contributions (20 billion euros in total for pension contributions alone, according to the Court) have made it possible to "absorb" or even "reverse" the unfavorable trend in French wage costs compared to the main European partners, "particularly at the lower end of the salary spectrum," the Court notes.

However, French contributions are "very high on the highest salaries", which "could have an impact on highly qualified employment", the Court believes.

"The main conclusions of this report shed light on the need to increase the employment rate of senior citizens," Matignon noted in a press release, noting that they "draw attention to the current burden of financing the pension system on the competitiveness of the French economy."

"This work sets out the implications that certain adjustments to our system could have on competitiveness and employment," according to the government.

The first president of the Court of Auditors hoped that the social partners would succeed in the ongoing consultations, because "the status quo is impossible," he said.