In France, compulsory supplementary pensions have been introduced. The allowances are almost borne entirely by the state. The French pension system comprises of a publicized finance. A statutory pension insurance scheme has been put in place in France to provide earning related benefits to the employees especially in the private sector. Workers who make less income are expected to receive a pension of at least 85% of the French minimum wage. Dedicated public sector pension and special schemes are also available for the state and local authority employees as well as workers employed in arduous professions. The French pension plan has entailed many problems such as resistance which have been conquered. The pension system comprises of the voluntary private pensions, compulsory supplementary pensions as well as the French state pension scheme. The pension plans in France are aimed at securing the sustainability of public funds through cushioning the enormous burden placed on the pension system as predicted between 2020 -2040.
Ultimately, the role played by the French pension scheme has significantly transformed over the past decades. The French set a great move through the right to retire on a pension which is earned progressively. It involves a wide range of schemes linked towards an occupational basis. The government aims at reducing the poverty levels among retired personnel. The pension system is important as it helps to sustain retired employee through providing financial independence and security. Through the PAYG scheme, the loss of income in retirement is barred, and protection is secured in the form pensions in the event of retirement. To encourage savings, the French government provides tax relief on the contributions done to the pension schemes. Although the system is bound to face problems due to the spiraling number of pensioners, its benefits and achievements cannot be outshined.