Faced with uncertainty about their financial future, the French are saving more for retirement
Anxiety about the financial future of French retirees is growing, prompting many citizens to set money aside to ensure a comfortable retirement. Discover the trends and solutions for addressing this major challenge.
A growing concern among those who are not yet retired
The fear of not having a retirement pension sufficient to live comfortably is very real among those who have not yet retired. According to the 2024 Amphitea–Cercle de l’épargne survey titled “The French, Savings, and Retirement,” only 47% of high-income non-retirees believe their pension will be sufficient to maintain their standard of living.
A sense of insecurity that varies depending on individual profiles
Perceptions of whether one can live comfortably on a retirement pension vary considerably among different segments of the population. Overall, only 34% of French people believe they will be able to live comfortably on their retirement pension. Young workers aged 18 to 34 are more optimistic (38%), but this confidence declines significantly as retirement approaches, dropping to 21% among workers over 50.
A notable gap is also observed between men and women: 38% of non-retired men say they are confident about their future pension, compared with only 21% of women. This disparity reflects wage inequalities throughout their working lives. Among retirees, nearly half (47%) say they are getting by comfortably on their pension, but this satisfaction rate has dropped by 7 points this year.
Savings on the Rise to Prepare for Retirement
Faced with these uncertainties, a growing number of people who are not yet retired are investing in savings products to prepare for retirement. After a decline in 2023, there has been a marked increase in the percentage of people who regularly set aside money in savings products.
This increase is particularly noticeable among the middle classes. Forty percent of people with modest incomes and 71 percent of those with high incomes report saving for retirement. The share of people with upper-middle incomes who save “whenever possible” has risen by 10 points in one year, and the share of those with lower-middle incomes who save “regularly” has increased by 9 points. This rise in savings can be attributed to ongoing concerns about the standard of living in retirement and to an increase in the ability to save due to lower inflation.
Pay-as-you-go or funded pension system?
When asked about the ideal pension system for the future, a majority of French people (50%) prefer a purely pay-as-you-go system, up 9 percentage points in one year. A purely funded system attracts only 10% of respondents, while support for a hybrid system combining pay-as-you-go and funded components remains stable at 40%. Those over 50 and retirees naturally favor the pay-as-you-go system, while the majority of young people aged 18 to 24 are in favor of a hybrid system.
Strategies for Maintaining Your Standard of Living
When it comes to building retirement savings, the French prefer individual retirement plans over group plans offered by employers. This preference is most prevalent among those who are not yet retired, regardless of their age. Executives (57%) and high-income earners (61%) also prefer individual savings plans. Among those who have not enrolled in a PER, 65% express this preference for individual products.
To maintain their standard of living in retirement, working adults rely almost equally on their retirement pensions (32%) and financial investments (33%). Those under 35 rely more on financial investments, while those over 50 rely more on their retirement pensions. Those who have already opened a PER account consider this product essential for maintaining their standard of living in retirement.
