Pensions: the indexation of pensions will cost the State 6.5 billion euros: News

Pensions: the indexation of pensions will cost the State 6.5 billion euros: News
Pensions: the indexation of pensions will cost the State 6.5 billion euros: News

While retirement pensions will be “mechanically” indexed to inflation and increased by 2.2% on January 1, this trend will weigh heavily on public finances, reports Le Parisien, Tuesday December 10.

A bill that promises to be hefty. As deciphered The ParisianTuesday December 10, the censorship of Michel Barnier's government and the absence of a budget for the coming year have the direct consequence of “mechanically” indexing retirement pensions to inflation, i.e. an increase of 2.2 %. With its draft Social Security budget (PLFSS), Michel Barnier's government initially intended to postpone the indexation of pensions to inflation from January 1 to July 1, 2025, which would allow state coffers to achieve a saving of four billion euros.

Conversely, this measure will cost “6.5 billion euros“to public finances, confirmed with our colleagues the entourage of the Minister of Budget and Public Accounts, Laurent Saint-Martin. “Indexation is either provided for by the PLFSS (Social Security Finance Bill), or provided for mechanically by law. In the absence of PLFSS, it is therefore the law which applies and the last inflation observed“, regretted a member of a ministerial cabinet. In 2024, inflation stood at 2.2% for the whole year according to INSEE.

17 million retirees affected

As Franceinfo reminds us, 17 million French retirees will see their pensions increase from February 2025. Concretely, a former private sector employee whose pension reaches 1,400 euros net per month (980 euros basic pension) will see their pension increase by 21. 6 euros, Capital calculated. A former civil servant who had the same pension (including 1,372 euros of basic pension) will see his pension increase by 30.2 euros. In 2024, retirement pensions have already increased by 5.3%.

published on December 11 at 11:10 a.m., Quentin Marchal, 6Medias

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