What France's Controversial Retirement Age Increase Can Teach Americans

Recent protests in Paris over President Emmanuel Macron’s plan to increase the retirement age without a vote in the National Assembly has sparked a conversation about retirement planning in the U.S.

In France, the President’s plan would make the French work two additional years until age 64, before receiving a full pension.

Retirement planning is a significant concern in America too; while the full retirement age stateside is 64, a 2022 AARP study finding that 42% of Americans feel unprepared for retirement, despite 87% acknowledging its importance.

Further, only 30% of Americans are financially ready to retire by the time they reach retirement age, according to Bankrate.

Calculate your potential monthly retirement income.

Retirement planning involves having a plan for your retirement income, not just saving enough to cover your expenses. One effective way to prepare is by contributing to a 401(k) or IRA, which offer tax benefits and can help grow savings over time. Consolidating old 401(k) plans into existing IRAs can also simplify the process, which new companies have made possible.

It’s crucial to determine how much you need to save to maintain your current lifestyle in retirement. Seeking the help of a financial advisor is one option to consider, as they can create a retirement plan tailored to your individual needs, investments, and Social Security benefits.

The French protests highlight the importance of being prepared for retirement. If Macron’s plan becomes law, French citizens will have to work two additional years before receiving their full pension.

While the situation in France may be different, the sentiment around retirement is universal. By saving aggressively, investing wisely, and seeking professional guidance, Americans can increase their chances of a comfortable retirement.