France's Aging Challenge: A Financial Wake-Up Call

France is in for a rough ride. The country's population is getting older fast. By 2070, nearly one in three people will be over 65. Meanwhile, the number of working-age people will drop by more than 3 million. This shift is a big deal for France's finances. Right now, healthcare, pensions, and caring for the elderly already take up over 40% of public spending. That's a huge chunk. And it's only going to get bigger. If things keep going the way they are, public spending could hit levels not seen since the COVID-19 pandemic. France used to have a higher birth rate than other European countries. But that's changed since the pandemic. Now, the number of children per woman is falling, and the number of retirees is rising. This is a problem because France's pension system relies on workers to fund retirees' benefits. With fewer workers, there's less money coming in. But with more retirees, there's more money going out. This is what experts call a "scissor effect. " It's a big worry for France's financial future. The audit office suggests that boosting employment among young people, seniors, and women could help. But they also say that immigration alone won't fix the problem. Deep structural reforms are needed. Last month, lawmakers voted to suspend a pension reform that would raise the retirement age from 62 to 64. This delay might make the problem even worse. Experts urge politicians to tackle this issue head-on.