The dangers of breaking intergenerational solidarity: The example of France

We will illustrate our comments by the example of France: If the "young" ( the working population ) believe that pension system will provide them with only limited retirement benefits , and if they have no confidence in the pension system to pay them a decent pension , intergenerational solidarity will be broken . This is probably happening in France, given the fall in the generosity of the pension system for more than 20 years, and the de-indexation of pensions from price s . If intergenerational solidarity is broken, the following may appear: Precautionary savings, i.e. domestic demand is depressed ; A reduction in risk-taking (leading to less business creation, less implementation of innovations, more protection) since a safe pension system, without uncertainty about the level of pensions, may give the possibility of risk-taking.