French President Francois Hollande and his Socialist government today presented a draft decree to lower the retirement age from 62 to 60 for some French workers, the AP reports.While we should note that not all will be are eligible (AP says that those with a number of children or who entered the work force at 18 are examples), lowering the retirement age is a pretty unusual move for Europe right now — and seems to ignore a lot of advice.
Just this week the CEO of AIG predicted that the retirement age could end up reaching 80, Bloomberg reports, while a different report that JLT Pension Capital Strategies estimated that the EU would have to raise its average retirement age from 61 to 75 to ensure that state pensions were sustainable.
Some European states are taking on that plan — the UK is aiming for 68 by 2046, for example. Hollande’s predecessor, Nicolas Sarkozy, had moved the French retirement age from 60 to 62, hoping to catch up with the US and Germany, who are edging towards 67.
Hollande’s plans reverse that momentum — and some estimate will cost France 3 billion euros ($3.7 billion) a year.
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