France’s aging population is taking over younger generations
Credit:Pixabay:Alexas_Fotos
An aging population, led by the oldest president in French history, mirrors the broader European demographic trend where older generations are increasingly dominating resources, often at the expense of younger workers and investors
Today, 20% of the French population is over 65. This has increased from 13% in 1970 and by 2070, will be almost one third of the country’s inhabitants. Perhaps a parallel to this demographic was the appointment of Michel Barnier, the oldest prime minister who had replaced 35-year-old Gabriel Attal, the youngest ever prime minister. One can’t help but consider this parallel as hugely significant, as the country’s demographics are rapidly shifting into an increasingly aging population. This trend has become ever more apparent since the 2010s as the baby boom generations began turning 60.
France´s aging trends show that life expectancy increase is surpassing birth rate
According to the French National Institute for Statistics and Economic Studies (INSEE), the trend is more pronounced as the birth rate of French citizens is declining rapidly. In 2023 France recorded a 20% reduction in recorded births than in 2010. In figures, this equates to 678,000 fewer babies. While the basic mathematical principals would suggest a predictable pattern, there are more variables to contend with. This includes better medical care for the over 60’s, which is facilitating a longer life expectancy and fewer disabilities. This can be seen in figures across just over a decade. In 2010 for example a baby boy born in France had a life expectancy of 78 years, and a baby girl 84.6 years. By 2023, that figure had increased to two years for males and a little over one year for females.
Troubled waters ahead for Barnier as governments struggling with more pensions
While French over 65’s can look forward to more years of comfortable living, there are challenges that will become more unavoidable as time pushes on. This may become a European-wide issue with more countries predicted to follow suit. There will undoubtedly be further dependence on the government purse, stretched by labour shortages and fewer savings as it begins to struggle socioeconomically as a country with an aging population. In the current economic environment, there is more saving at the expense of investment. As less growth is generated and as consumption declines with age, there is the strong possibility of confrontation on the horizon for all European leaders and the over 65’s. In France, a quarter of public spending is currently allocated to pensions—a burden the country can no longer afford as it grapples with poor credit ratings and a staggering €3.3 trillion national debt. Surely a lot of hard decisions to be made, while the rest of Europe takes note.
