Retirees are always the biggest beneficiaries of public policies

Is France going overboard for its retirees? To find out, Fipeco, an independent public finance analysis organization, analyzed INSEE data breaking down public spending by “function.” 
 

The results speak for themselves. Of every 1,000 euros in compulsory levies, 563 euros—or 56.3% of public spending—went toward social protection in 2022. Specifically, 247 euros were allocated to pensions. This figure represents a 10% increase over the period. 
 

209 euros are allocated to health care, 37 euros to families, and 29 euros to unemployment benefits.
 

Since 1995, the share of spending allocated to pensions has increased, primarily at the expense of education spending (90 euros). Support for economic activities amounts to 116 euros (aid and subsidies to households and businesses, excluding transportation, total 81 euros, and transportation spending totals 35 euros), while spending on “general services” (administrative support functions) totals 67 euros.  Defense is one of the biggest losers over this period, at 31 euros—barely less than interest on the public debt, which stands at 34 euros.
 

"Partially decoupling pension levels from inflation would make sense and would even be fair, given the choices the government has made regarding its reform," says François Ecalle, the head of Fipeco.
 

For the record, Economy Minister Bruno Le Maire announced a 5.2% increase in retirement pensions effective January 1, 2024. Back in August 2022, based on the same principle, pensions had already increased by 4%, followed by a 0.8% increase in January 2023.