How does Monaco’s pension system compare to France?

With the backlash over France’s pension reforms making headlines, we take a closer look at the Principality’s retirement scheme to see if reforms are on the horizon for Monaco as well.

Every week in France, the country’s biggest unions and workers take to the streets in protest over President Emmanuel Macron’s changes to the pension system, which will raise the retirement age from 62 to 64 by 2030.

In addition, people will need to have worked for at least 43 years to get a full pension, starting from 2027. According to Prime Minister Elisabeth Borne, “By 2030, our system will be financially balanced.”

So, what’s the situation in neighbouring Monaco?

As it turns out, Monaco’s pension programme is solid and reasonable, offering retirees several options on how and when to start the post-work chapter of their lives.

The official legal age for retirement in Monaco is 65. That being said, pensions can start to be drawn earlier without deduction, and there is even the possibility of an increase once the pensioner turns 65.

For people looking to stop work a bit sooner, early retirement is possible and broken up in to two categories: those wishing to stop work at age 55 and those wishing to retire between the ages of 60 and 65.

The option for the 55- 60-years group is limited to mothers who have raised at least three children for a minimum of eight years. For those between 60 and 65, it is open to anyone in this age range who is ready to stop or decrease activity.

Once hitting the legal retirement age, workers receive a pension based on the number of points acquired during their work life up until the eve of their 65th birthday, but pensions are paid out even to those who stay on at work, though in these cases, they will still need to pay into the system as before and will not be acquiring new points.

The pension is increased by 1.5% per full quarter, though, between the person’s 65th birthday and their chosen retirement date. These hikes stop at the age of 70, but still, that gives these workers an overall max increase of 30% and doesn’t penalise, but actually rewards, people for wanting to stay in the workforce longer.

The Principality’s rules on who gets a pension are pretty lenient, stating that employees have to have worked in Monaco for at least 10 years. During that decade, the applicant must have worked a minimum total of 60 months. The guidelines aren’t terribly stringent, showing yet more consideration toward workers in the system.

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Photo credit: Braňo on Unsplash