Pay-as-you-go vs Funded: The great 2026 comparison

Last updated: January 2026
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Pay-as-you-go vs Funded: The great 2026 comparison

The definitive comparison between the two pension systems. Discover why funded systems yield more.

Side-by-side comparison

Pay-as-you-go (current)

The current French system: your contributions pay today's retirees.

Pay-as-you-go pension1 913 €/m
Funded annuity4 329 €/m
Final capital1 298 595 €
Monthly loss-2 415 €

Funded

Better

Alternative system: your contributions are invested and belong to you.

Pay-as-you-go pension1 913 €/m
Funded annuity4 329 €/m
Final capital1 298 595 €
Monthly loss-2 415 €

The verdict

Funded

generates 0 € more with funded system

Difference

0 €/m

Capital gap

0 €

Pension gap

0 €/m

What it means

This comparison illustrates the concrete impact of pay-as-you-go (current) vs funded on your retirement. Whether you choose one or the other, the pay-as-you-go system loses you money. The real question is: how much exactly are you losing?

Frequently Asked Questions

Pay-as-you-go (current) or Funded: what's the retirement difference?
The pension difference between pay-as-you-go (current) and funded is 0 €/month with pay-as-you-go. With a funded system, the capital gap reaches 0 €.
Which scenario is more advantageous?
In terms of potential monthly annuity with a funded system, Funded generates 4 329 €/month, which is 0 €/month more.
What is the methodology for this comparison?
We use URSSAF 2025 rates, a 6% yield adjusted for inflation, and a 20-year retirement life expectancy. Calculations assume a full career.

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Our methodology

Comparison based on URSSAF 2025 rates, 6% yield (inflation-adjusted), and 20-year retirement life expectancy. Calculations assume a full career and constant salary.

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