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Retirees can finally look forward to an increase in basic pensions in January 2025. However, despite the government’s efforts to find a solution after the initial pension freeze, this increase does not satisfy everyone. MoneyVox revealed two bad news which cloud the extent of this annual increase.
A half-hearted increase
The announcement of the pension increase planned for January 2025 immediately sparked a reaction. After the freezing of basic pensions envisaged by the government, which would have postponed any revaluation until July 2025seniors expressed their concerns. The latter counted on these increases to mitigate the effects of inflation.
Finally, a compromise was found: from January 2025, basic pensions will increase by 0.8%. Although this increase appears modest, it represents relief, even partial, for many pensioners.
In addition, in July 2025, a new revaluation will take place. But it will only concern retirees with a monthly gross income less than 1,524 euros.
To have
Pensions: bad news, how much will you lose with the 0.8% increase in 2025?
This measure, aimed at financially supporting the most vulnerable, therefore excludes a large proportion of retirees, despite its good intentions. It results from a amendment to the financing bill for the Social security (PLFSS) passed in the Senate.
A big disappointment among retirees
Although this solution seems gentler than a complete pension freeze, it fails to meet all expectations. Many policyholders, who were hoping for a larger increase, would find themselves with an amount that only partially meets their needs. But why does this increase seem so weak, when a revaluation more substantially was possible?
The calculation carried out to arrive at this 0.8% deviates from the usual indexing method. Normally, pensions are readjusted according to the average inflation observed until October 2024which would have allowed an increase of 2.2%.
The revaluation of 1.1%equivalent to half of inflation, would therefore have been possible, underlines MoneyVox. However, the government chose to limit the increase to 0.8%, a decision motivated by the desire to control the impact on public finances.
This compromise, while it avoids a complete freeze, leaves the impression of half-measures. This increase, even if it relieves a little, will therefore not be able to compensate for the increase in prices. A bitter taste for many policyholders.
To have
Good news for these retirees: you will no longer have to pay this tax in 2025, those concerned
A long-term impact on pensions
The government justifies this moderate increase by optimistic economic forecasts, in particular an expected drop in inflation in 2025. According to its estimates, this trend will make it possible to limit the budgetary impact to 500 million euroswhile offering the possibility of financing an increase in small pensions in July 2025. However, this approach is not without criticism.
Claude Wagner, representative of the CFDT Retireesunderlines the general disappointment with this revaluation which remains well below expectations. He also warns that this cautious calculation could have negative effects in the long term. “This drop will have an impact on revaluations in subsequent years”he warns.
In other words, this limitation could penalize retirees in the long term. Indeed, the adjustments may be difficult to follow in the face of the increase in the cost of living.
Source : MoneyVox
