Ageing populations How Europe's social contract became a ticking timebomb

France's pensioners earn, on average, fractionally more than people in work, thanks in part to a generous mandatory state pension that, for those with full contributions, pays out a maximum of 50% of previous salary (up to a certain limit).

- JON HENLEY

France Minimum state pension retirement age: 62 Monthly state pension (average): €1,500 ($1,760) Share of GDP represented by state pension: 13.4% Population over 65:40.2%

In practice, that averages out at about €1,500 a month or €18,000 a year. A relatively early retirement age and high life expectancy mean French men can expect to enjoy almost 23 years in retirement and women 26, near the very top of the OECD league.

The scheme has the lowest qualifying age 62 of the main EU economies, and French pensions from all sources replace a bigger share of pre-retirement income than in most countries.

All this, though, comes at considerable expense: state pensions cost France 13.4% of GDP, well above the OECD average of 8.1% (the UK figure is 5%).

The president, Emmanuel Macron, has tried to overhaul the system but not succeeded.

A first effort in 2019 provoked the country's largest cumulative wave of strikes since the mass political unrest of 1968. A second attempt, including plans to raise the standard retirement age to 64, faced huge union opposition culminating in a protest that drew an estimated 1.28 million people.

In early 2023, the government finally rammed the overhaul through without a vote in parliament, but the prime minister, Sébastien Lecornu, had to suspend it until 2027 in order to survive a no confidence vote.

Germany Retirement age: 66 Monthly state pension: €1,600 Share of GDP represented by state pension: 10.8% Population over 65: 39.8%

In the early 1960s there were about six people in work in Germany for every retired person. With ever fewer workers and ever more pensioners, that ratio has slumped to about two to one, and is continuing to fall fast.

The federal government has calculated it would have to spend a quarter of its total budget of €525bn next year in order meet the needs of the statutory pension system.