France rises Retirement age to 62 from 2018

Sarkosy has increased the French Retirement age to 62 in 2018 from 60 now. The state pension fund will lose €10.7 billion this year and it will lose €50 billion by 2020 unless steps are taken to cut the cash volume. It is thought that the change will bring the pensions system into balance by 2018 if the changes are made. In 2005, the average retirement age for men was 58.5 compared to a EU average of 61.4 years. For women it was 59.1 in France and 61.4 for EU average. The age to qualify for the highest pensions will rise from 65 to 67. The number of years work to receive the top pension will rise from 41 years now to 41.5 years in 2018. Longevity in France is above 80 for men and women.

The French government has increased taxes on stock options, dividends, capital gains and the top rate of income tax will be raised to 41%. The top rate kicks in at €69,783. Capital gains will be taxed at same rate as income raising €180 million annuallly.