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The reform of the CSG for retirees in 2025 is a real upheaval for your budget! The government has decided to readjust the CSG rates, and the consequences on your retirement pension are likely to be notable.
Whether you are already retired or in full preparation for this big turning point, it is essential to understand these new thresholds and their direct impact on your finances. Find out everything you need to know to best anticipate this change.
What is the CSG and why does it concern retirement?
The Generalized social contribution (CSG)you probably know it, but do you know exactly how it affects your retirement income? This contribution is used to finance Social Security, health insurance and other social benefits. It applies to all types of income, including your pensions.
But in 2025, a wind of change will blow over the CSG of retirees. And it is your reference tax income (RFR) which will determine the rate. In practice, according to amount of your RFRyou will find yourself paying a different CSG rate.
To have
The new minimum pension amount you will receive in 2025 with a full rate departure
So what's changing? A recalculation of the rates applied to your pension, based on your tax situation. Three rates will then be defined for you : a reduced rate for the lowest incomes, a median rate for those in the middle and a standard rate for higher incomes.
How the new thresholds will impact your retirement
From 2025, your pension will experience a change in the calculation of the CSG, which will depend on the RFR from the previous year.
If you are in a low income bracketyou benefit from a reduced rate of 3.8%. For those with middle incomethe rate will rise to 6.6%. Retirees with highest income will pay a rate of 8.3%.
THE income thresholds are clear. For example, if you are single and your RFR exceeds €12,817, you will move to the median rate of 6.6%. If your RFR exceeds €26,004, you will be subject to the normal rate of 8.3%. As a couple, with two tax shares, the thresholds increase to €19,661 and €39,886 respectively.
The case of supplementary pensions
But be careful! This change does not only concern your basic pension. If you perceive a supplementary pensionparticularly that of Agirc-Arrco, you will also have to be vigilant. In fact, the adjustment of the CSG rate on this supplementary pension will take place a little later, in March 2025.
To have
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This slight shift could create confusion and lead to a double adjustment of contributions. It might then be difficult to understand exactly how these changes affect your budget in the short term.
Anticipate to better manage your retirement
Anticipation remains the key to manage this reform well. By carefully monitoring your RFR and adjusting your expectations accordingly, you will avoid finding yourself in an uncomfortable financial situation.
Also consider consulting a tax expert to identify possible tax optimizations. For example, certain tax deductions can alleviate the impact of these changes.
To best prepare for this transition, plan your budget now, taking into account the new thresholds and additional contributions. For example, there is CRDS and CASAwhich are added to the CSG. Proactive management of your finances will allow you to pass this stage with complete peace of mind and fully enjoy your retirement.
