By Adam Cadle
The French government has today signed off a decree that will see the State Pension Age (SPA) lowered to 60 from 62 years of age for those who start work at 18 and have contributed to the French pension system for longer than 41 years.
In addition, the reform that is set to affect around 110,000 people will also allow mothers with three or more children to retire at this age.
The change comes after Nicolas Sarkozy and François Fillon passed a law in November 2010 which saw the legal retirement age in France pushed back from 60 to 62 in order to deal with longevity risk and pension deficits.
Speaking to the press after the French Cabinet meeting, social affairs minister Marisol Touraine said 110,000 people would benefit at a cost of €1.1bn rising to €3bn in 2017. She also mentioned that the lowering of the state pension age would be funded through increased employee and employer contributions.