October 13, 2024, by The Editorial Team
Retirees from the private sector in France find themselves in a delicate situation faced with rising prices. The revaluation of Agirc-Arrco “supplementary pensions” and “basic pensions”, which constitutes essential support for many former workers, is threatened by government measures. This article explores the implications of these changes for France’s 17 million retirees.
An alarming situation
The revaluation of Agirc-Arrco “supplementary pensions”, planned for November 2024will be much lower than that of 2023who had reached 4,9 %. According to INSEE, annual inflation should stand at 2,1 % in 2024, while the consumer price index excluding tobacco could reach 1,9 %. Current forecasts suggest a revaluation around 1,5 %suggesting financial difficulties for retirees…
Furthermore, the long-awaited revaluation of “basic pensions” was postponed from January 1, 2025 au July 1, 2025. This additional delay raises concerns among retirees who depend on these fixed incomes (how will they do it?).
Who are the decision-makers?
The Prime Minister Michel Barnier bears the main responsibility for these revaluation measures. His government justifies this postponement by the need for budgetary savings… Indeed, the overall objective is to achieve a public deficit of 5 % in 2025 by achieving savings totaling 60 billion euros.
For their part, union representatives such as the CFDT retirees expressed their concerns about the purchasing power of retirees and predict a more significant increase for 2025, estimated between 2,3 % et 2,4 %.
Impact on daily life
The postponement and planned reduction in the revaluation will have a direct impact on the monthly budget of approximately 17 millions of retirees in France… For example, a retiree with a monthly pension of 1 400 euros will suffer a substantial shortfall: almost 185 euros over six monthsor approximately 30.80 euros per month. This loss can have major consequences on their quality of daily life.
Furthermore, this situation highlights the economic challenges faced by those who have built their careers in the private sector (are they really being taken into account?). They now rely on this income to live with dignity.
Key figures to remember
- Agirc-Arrco revaluation in 2023: 4,9 %
- Annual inflation forecast in 2024: 2,1 %
- Revaluation planned for November 2024: approximately 1,5 %
- Amount of shortfall for a retiree with a basic pension:
- Total over six months: 185 euros
- Monthly amount lost: approximately 30,80 euros
- Savings targeted by the government with the postponement:
- Environ 4 billion euros
These figures clearly illustrate the scale of the economic challenge faced by retirees in this uncertain period…
Towards what future?
If the plan proposed by the government is adopted as is (which seems likely), this could mean that the increase initially scheduled for January will be deferred until July 2025. In addition, this revaluation could be less generous than expected if the inflation continues its downward trend… So what will be the future repercussions?
Pensions thus remain at the heart of a crucial budgetary debate even as basic needs increase in proportion to the increasing costs linked to daily life.
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