Analysis: A Complex Pension System and Savings Out of Reach

The French are increasingly concerned about their retirement, but the vast majority of them are unable to fully understand how the system works. 

The evidence is clear: a lack of information, a system perceived as opaque, and savings seen as inaccessible are fueling growing mistrust of existing systems.
 

A complex pension system considered unfair
The recent Savings Observatory, published in October 2024 by Garance, a mutual insurance group, and Viavoice, highlights a troubling reality: only 8% of French people truly understand how the pension system works. 

This figure drops even further among the working population, with only 7% of workers having a clear understanding of the system. The vast majority of French people—whether they are executives, artisans, employees, or members of the liberal professions—are confused by the complexity of the system. Even among retirees, 86% are unable to correctly answer questions about how the system works.
 

There are numerous gaps in understanding:
• 74% of French people are unaware of how contributions are distributed.
• 51% do not know how the system is funded.
• 49% do not know who actually benefits from these contributions.
This lack of understanding creates a sense of injustice. 68% of French people believe the pension system is unfair, particularly between generations. The system is seen as ill-suited to current societal realities, and 70% of French people believe it meets the expectations of neither young workers nor future retirees.
 

A Desire to Save, but Numerous Obstacles
Nearly 9 out of 10 French people (86%) say they want to save more, particularly for retirement. However, the financial situation of many of them and high inflation limit their ability to save. According to Garance, this phenomenon is exacerbated by a lack of financial literacy, which prevents French people from turning to appropriate solutions to plan for their future.
 

Virginie Hauswald, CEO of Garance, emphasizes: “The French want to save, but they are too often left to fend for themselves when faced with a complex, even dehumanized system. It is urgent that we give them the tools to better understand the system and truly democratize access to savings, so that they can look to the future with peace of mind.”
 

Democratizing Access to Savings: An Urgent Need to Restore Confidence
Faced with a pension system considered precarious and complex, and savings perceived as inaccessible, 81% of French people say they are worried about their future. 

The solution lies in making savings accessible to everyone, which involves several key measures:
• Transparency and clarity regarding savings products, with a simple explanation of their technical and tax-related details;
• Financial education to familiarize the French public with investments, with a view to enabling individuals to manage their own savings;
• Setting aside savings, with solutions tailored to limited incomes, such as “cagnottage,” a method that allows people to save based on their daily expenses.