By proposing to postpone the indexation of pensions to inflation by six months to make savings in the state budget, Michel Barnier provoked the indignation of the entire political class. Marine Le Pen denounced a “petty measure”, the LFI president of the Finance Committee, Éric Coquerel, considered that retirees “must be exempt” and Yaël Braun-Pivet, from the presidential camp, asked for at least adjustments. Faced with such an outcry, the Prime Minister said he was considering other measures.
Enough to revive an old music in France, and a great frustration among a part of the active population: retirees, the main voters, would be constantly protected by politicians, spared by economic measures and financially privileged.
A population more difficult to sample
Not everything is inaccurate. France is the only country where retirees have a standard of living similar to workers, according to the latest report from the Pension Orientation Council. Cocorico and somewhat incongruous situation at the same time. Anne Lavigne, professor of economics at the University of Orléans and author ofRetirement economics (La Découverte, 2013) admits some totems among retirees. “It is politically accepted that an active person has the means to adapt, change jobs or find a second one if their purchasing power drops drastically. For a retiree, it is much more difficult to find new sources of financing. » Secondly, “the idea that they have fulfilled their part of the contract by contributing for the previous generation and that we cannot touch them anymore”.
But this reasoning draws some criticism, specifies the expert: “If we start from the postulate: “I have contributed therefore I am entitled to it”, we can ask ourselves the question of return on investment. How much have they put into the system and how much are they getting back? » Or in mathematical economist jargon: internal yield. However, this is very different for the “baby boomers” than for the following generations – if you were born after May 1968, it smells bad for you, basically, and getting worse and worse. “What we quickly see is that the baby boomer generation has contributed at much lower rates and for much less time – retirement occurs much earlier,” continues Anne Lavigne.
A golden generation, but not immune
Jacques Le Cacheux, economist and public finance specialist, also sees a problem in the argument: “Everyone fulfills the social contract, including assets. If we are asking everyone to make a budgetary effort, why should retirees be exempt? » And it must be said, this famous social contract was not the same for all generations, he continues: “On average, baby boomers suffered less from unemployment and had much easier access to property. We can still recognize that they had an overall better life… Even if that is of course not a reason to penalize them for that. »
Michael Zemmour, economist, recalls that retirees are not immune from political measures either: François Hollande in particular had already postponed the indexation of pensions several times. Even Emmanuel Macron, seen as the president of retirees, had increased the CSG (generalized social contribution) of retirees in 2018, from 6.6% to 8.3%. Of course, always less than the assets; 9.2%.
“Seniors treated better than the general population”
Another useful reminder from the three economists is that retirees do not form a united whole. Half of women, and 30% of pensions in total, receive less than 1,000 euros per month. 10% of seniors in France are below the poverty line. Certainly, less than the general population: 15%.
As for indexing to inflation, “it is a logical measure, and the implicit contract of the pay-as-you-go system,” maintains Michael Zemmour. So yes, the salaries of working people have not yet caught up with inflation. “But that’s the anomaly, and not the increase in pensions,” believes the economist. Take heart, according to projections, this should be the case within two to four years. “It is wrong to say that those spared are totally immunized by politicians,” concludes Jacques Le Cacheux. But on average, they are treated better. » Anne Lavigne cites in particular the incomprehensible 10% reduction for professional expenses to which retirees are also entitled (at least those who pay taxes), even though… they have no professional expenses.
“The lack of tax justice among retirees”
“But the real problem,” continues the specialist, “is the lack of tax justice in the political treatment. We cannot treat all retirements the same. » Thus, one of the measures in 2019 – finally canceled with Covid – was an increase in small pensions (less than 2,000 euros gross per month) by 1%, and only a 0.3% increase for others. “It is this type of differentiated policy that we must target and that the government is forgetting. »
Quite the opposite in fact of the six-month freeze on indexation, which targets all retirees regardless of their income. “Contradictory with the increase in small pensions” so much praised in the 2023 reform, adds Michaël Zemmour. For Anne Lavigne: “It smacks of a hasty, short-term measure, to obtain a few billion euros in savings as quickly as possible to reassure the markets, but without really any sense or justice. » Hit retirees fiscally, why not. But at that moment, do it well.