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After President Emmanuel Macron announced a proposal in January 2023 to raise the retirement age for French pensioners from 62 to 64, Bitcoin may help sustain the value of pension plans in France.
The largest asset manager in the world, BlackRock, was today invaded by protesters, the latest blow against President Macron’s broad reforms, which critics contend primarily favor wealthy firms.
On March 16, 2023, the French government forcibly approved the revised plan without a vote.
The new law not only lowers the retirement age but also unifies all 42 programs into a single points-based plan. According to reports, this revamped approach would make employment interruptions and changes easier. Employees whose plan gives greater pay and a later retirement age will be harmed, nevertheless.
Macron tried to change people’s perceptions of the proposed reform by a protracted national consultation while knowing that there would probably be winners and losers as a result of it. He stated that the plan will begin in 2025 and be completely implemented over a 15-year period.
According to the French Pension Advisory Council, by 2030, the change will net the French government $19.3 billion. More than $4.9 billion may be spent on compensatory measures to ease the transition to a higher retirement age and extended contribution period.
While some fund managers, like as Vanguard, think that Bitcoin has a poor long-term value proposition, others have viewed it as a safe-haven asset that guards against currency devaluations that retiring employees would probably experience.
U.S. pension funds have often recommended crypto allocations on the cautious side, utilizing them to increase profits without suffering substantial losses.
By the end of 2023, Boston-based Fidelity said it will include Bitcoin into its 401(k) programs. It would permit a worker to put up to 20% of their pension savings to cryptocurrency. About 23,000 firms’ pensions are managed by Fidelity.
In order to emulate Fidelity Investments and ForUsAll, two renowned American pension fund managers, cryptocurrency supporters see France’s pension reform as a chance to expand Bitcoin usage.
Investors may be able to retire at the original age of 62 if pension assets are converted to Bitcoin within the next five years, according to cryptocurrency entrepreneur Del Crxpto. Some contend that investing a part of cash in cryptocurrencies is justified by currency depreciation.
Pensioners currently have an after-tax income of 1,400 euros per month. Pensioners would require around 1,721 euros per month by 2030 and 3,109 euros by 2050 to maintain the same level of living based on a 3% annual inflation rate. This forecast is based on unprocessed data from the European Commission and the European Central Bank.
In contrast, Bitcoin has increased by almost 70% from its January 1, 2023 price of $16,600. The price is presently little below $28,200.
Max Bitcoin Michael Saylor continues to be optimistic about Bitcoin’s history as a safe-haven asset. His business, MicroStrategy, which he chairs as executive chairman, just purchased a further 1,045 bitcoins.
The most recent acquisition brings its holdings to more than 140,000. One of the first U.S. companies to give workers crypto allocations in their retirement portfolios was MicroStrategy.
