The year 2025 is fast approaching. And the least we can say is that retirees are looking forward to it. As a reminder, they will be able to benefit from an increase in their basic pensions of 2.2%.
A checkbox for retirees
Soon, retirees will be able to benefit from a revaluation. On the other hand, know that this is not the only good news that awaits them. A little-known approach could allow them to considerably reduce their taxes.
When an employee retires, he can receive a starting bonus. The latter varies depending on the circumstances. This bonus comes into effect upon voluntary departure at the legal age of 64.
Or when the employer terminates the contract after 70 years. In the latter situation, a retiree receives compensation that is often higher and received in one go. And this, unlike the retirement pension paid monthly.
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On the other hand, this bonus is eagerly awaited, but it remains subject to income tax as well as social security contributions. Be aware, however, that there is a trick to avoid not pay the full price upon receipt of this famous bonus.
If you retired in 2024, you will be able to declare this compensation in 2025 in box 0XX of the “Exceptional or deferred income” section. This approach is very important. And it's for good reason.
A tip to implement
Retirees can differentiate this departure bonus from regular income. As a reminder, these refer directly to box 1AJ dedicated to “Salaries and wages”. In this way, retirees can avoid having their entire premium included in their annual income.
In the latter case, taxes may increase. But with this simple adjustment, retirees will be able to benefit from a reduction. Instead of calculating tax on the entire premium, the system divides this sum into four equal parts.
A quarter of the premium is therefore added to your usual income to calculate the corresponding tax. Then, this difference is multiplied by four to determine the final tax. This progressive calculation limits the increase in your tax bracket.
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This can also save you several hundred euros. This is why it is essential to check this famous box. And for good reason, she can clearly make a big difference to retirees.
Although the people concerned are looking forward to this period of their lives, you must still be careful to manage your finances well. Indeed, senior finances can become difficult to manage.
It must be said that it is necessary adapting to a whole new system. So, the slightest tip to save money remains very appreciated. This is why they must be put in place at all costs.
