The retirement of French seniors is about to undergo significant changes, without the Government being directly behind them. These changes, resulting from negotiations between social partners, aim to adapt the system to the new realities of the labor market and demographic challenges.
Social partners, key players in changes to the retirement system
Contrary to popular belief, not all decisions regarding pensions are made by the executive. Unions and employers play a crucial role in the development of certain measures impacting seniors. On November 14, these social partners concluded a major agreement at Unedic headquarters, relating to the employment of seniors and retirement arrangements.
This agreement is part of a particular context:
- And employment rate of 60-64 year olds particularly low in France
- The recent pension reform raising the legal age of departure
- The need to value the experience older workers
The negotiated measures should come into force from 2025, marking a significant change in the employment and retirement landscape for French seniors.
New provisions for the employment of seniors
One of the major innovations of this agreement is the creation of Experience Valorization Contract (CVE). This system, intended for job seekers over 60 years old, has several particularities:
- The employee must indicate their full retirement age upon hiring.
- The contract ends automatically when this age is reached
- No reduction in social charges or salary supplement planned before 2027
This new contract aims to facilitate the return to employment of seniors while providing visibility to employers on the duration of the employee's engagement. On the other hand, its real effectiveness remains to be demonstrated, particularly in the absence of immediate financial incentives for businesses.
Gradual retirement: a little-known system to be relaunched
Alongside the CVE, the social partners decided to give new impetus to the gradual retirement. This mechanism, in existence since 1988 but little used (only 27,000 beneficiaries), allows a smooth transition towards cessation of activity. The new provisions provide:
-- The possibility of accessing it from 60 years old
- A reduction of working hours compensated by a fraction of the retirement pension
- The requirement to have contributed at least 150 quarters
For example, a change to 70% of working time would give entitlement to 30% of the retirement pension. This flexibility could appeal to many seniors wishing to gradually reduce their activity without losing all their income. However, the implementation of this system requires the agreement of the employer, which may limit its scope.
To find out more about geographical disparities in pensions, see our article on the departments offering the best pensions.
Impact and prospects of the new measures
The effectiveness of these provisions will largely depend on their adoption by businesses. These are often torn between two considerations:
Senior Benefits Barriers to hiring Professional experience High salary costs Specific skills Perception of a lack of flexibility Emotional stability Health Fears These measures will have to be transposed into a bill and examined by Parliament. Their real impact on the labor market and employment of seniors remains difficult to assess at this stage. Nevertheless, they demonstrate a collective awareness of the need to adapt the retirement system to current demographic and economic challenges.
French seniors thus find themselves at a crossroads, between extension of working life et retirement aspirations. These new provisions could offer more flexible options adapted to their needs, while meeting the challenges of an aging workforce.
France
