A limited revaluation that changes the rules of the game
Until now, the revaluation of pensions followed the evolution of the consumer price index excluding tobacco, thus making it possible to offset the effects of inflation. This system guaranteed a certain stability for retirees in the face of the rising cost of living.
What changes in 2025?
- Indexation reduced to 50% of inflation : In 2025, forecast inflation is 1.8%, but the revaluation will be limited to only 0.9%.
- A direct impact on purchasing power : With this minimal increase, pensions will no longer fully follow the increase in prices, leaving retirees behind financially.
For a retiree receiving €1,500 monthly pension, this represents an increase of only €13.50 per monthor €162 annually, far from what would be necessary to compensate for inflation.
Who is most affected by this limited revaluation?
Modest retirees
For pensions below 1 430 € netand additional catch-up is scheduled for July 2025. This aims to mitigate the impact of reduced indexation for the poorest households.
However, even with these measures:
- The gains remain much lower than those that would be possible with the traditional indexing method.
- The catch-up only covers part of the accumulated losses.
Retirees above compensation thresholds
Retirees whose pensions exceed 1 430 € will not benefit from any catch-up. Their purchasing power could therefore decline more quickly, especially if price increases continue to exceed planned increases.
The figures that worry retirees
Here is a simulation of potential losses depending on the amount of pensions, comparing the current method and that planned for 2025:
| Monthly pension amount (€) | 100% revaluation of inflation (1.8%) (€) | Revaluation to 50% of inflation (0.9%) (€) | Monthly loss (€) | Annual loss (€) |
|---|---|---|---|---|
| 1 000 | 18 | 9 | 9 | 108 |
| 1 500 | 27 | 13,50 | 13,50 | 162 |
| 2 000 | 36 | 18 | 18 | 216 |
| 2 500 | 45 | 22,50 | 22,50 | 270 |
Why does this reform attract so much criticism?
Purchasing power that is eroding
With a revaluation lower than inflation, retirees will see their budget eaten away over the years. Constrained expenses, such as energy or food products, continue to increase, making these pensions insufficient to maintain a decent standard of living.
Fuzzy and incomplete measurements
- Lack of clarity on compensation : The announcements remain vague on the exact terms of catch-up for modest pensions.
- No alternatives for medium and high pensions : These retirees will have to bear the relative decline in their purchasing power alone.
How can retirees adapt to these changes?
1. Review their budget
With a limited increase in pensions, it becomes essential to prioritize spending and identify areas where savings can be made.
2. Anticipate with additional savings
Retirees with assets or savings should consider solutions to compensate for the loss of purchasing power, such as:
- Invest in low-risk investments.
- Exploit dormant resources, such as partial rental of real estate.
3. Find out about the assistance available
Low-income retirees can benefit from social or tax assistance which reduces their budget, in particular:
- Housing allowances (APL).
- Local aid offered by certain municipalities.
A reform that raises more questions than answers
The increase in pensions in 2025 highlights a delicate balance between budgetary constraints and social justice. If it aims to control public spending, it also risks weakening retirees who rely on these pensions to maintain their standard of living.
But beyond the figures, this reform questions the future of the retirement system in France. Retirees need to take steps today to protect their purchasing power. And you, are you ready to adapt your finances to these new realities?
