[France] Teachers' pensions squeeze education budget

In France, the national education budget is being squeezed by the country’s pension system. Of the €90 billion earmarked for schools in 2026, more than a quarter will go to retired teachers rather than under-resourced classrooms, Reuters reports.

The retirement scheme faces pressures from demographic shifts and rising costs, leaving fewer resources to address declining student performance and exacerbating the challenge of funding pensions without depriving public services.

Pensions are reportedly a contentious issue in France, and past attempts to overhaul the system have sparked protests. Earlier this month, lawmakers suspended the president's flagship 2023 reform to raise the retirement age to 64 from 62 as part of negotiations to approve the 2026 budget.

The nation's pay-as-you-go system relies almost entirely on payroll contributions. The majority of Western countries incorporate private savings, easing the pension burden on public finances.

Reuters analysis of government data in next year's budget found that more than 28 per cent of the 2026 education budget is earmarked for pension contributions.

Source: Reuters

In France, the national education budget is being squeezed by the country’s pension system. Of the €90 billion earmarked for schools in 2026, more than a quarter will go to retired teachers rather than under-resourced classrooms, Reuters reports.

The retirement scheme faces pressures from demographic shifts and rising costs, leaving fewer resources to address declining student performance and exacerbating the challenge of funding pensions without depriving public services.

Pensions are reportedly a contentious issue in France, and past attempts to overhaul the system have sparked protests. Earlier this month, lawmakers suspended the president's flagship 2023 reform to raise the retirement age to 64 from 62 as part of negotiations to approve the 2026 budget.

The nation's pay-as-you-go system relies almost entirely on payroll contributions. The majority of Western countries incorporate private savings, easing the pension burden on public finances.

Reuters analysis of government data in next year's budget found that more than 28 per cent of the 2026 education budget is earmarked for pension contributions.

Source: Reuters