The deficit of the French pension system revised sharply in 2020

The deficit of the French pension system revised sharply in 2020

It stood at 13 billion euros in 2020, against 25.4 billion expected at the end of November.

Euro banknotes photographed in Briançon (Hautes-Alpes), April 19, 2021. (THIBAUT DURAND / HANS LUCAS / AFP)

Better news than expected. Lhe overall deficit of the French retirement system stood at 13 billion euros in 2020, according to a report from the Retirement Orientation Council (COR) consulted on Tuesday June 8 by AFP, against 25.4 billion expected at the end of November.

After its first alarmist projections in July (-29.4 billion), then in November (-25.4 billion), the COR has finally revised the deficit of all pension plans to halve. Once the payment has been deducted “exceptional” 5 billion from the pension reserve fund, in respect of an old balance to be paid from the electricity and gas scheme, “The deficit amounted to 13 billion”.

The effect is expected to continue into 2021, with a projected deficit of between 0.3% and 0.4% of GDP, or between 7 and 10 billion euros. This also takes into account “The fall in expenditure linked to excess mortality due to the health crisis”.