what this really means for your purchasing power

Why a limited increase at 1.6%?

The 1.6% increase in Agirc-Arrco pensions was set based on several economic and budgetary parameters. Among them, theinflation and the sustainability factor. Inflation for 2024 has been estimated at 1,8 % by INSEE, which naturally limits the room for maneuver for a higher increase.

In addition, the Agirc-Arrco regime applies a “ sustainability factor », designed to ensure its financial solidity. This factor prevents pensions from being completely aligned with inflation in order to preserve the plan's reserves. Thus, the revaluation should initially have been 1.4%, but a margin of 0.2% was added to reach 1.6%.

What is the concrete impact of this increase in your pension?

Although the 1.6% increase may seem modest, it still represents a significant adjustment for retirees. Here is a table illustrating what this increase represents for different monthly pensions:

For a retiree receiving a pension of 1 000 €this 1.6% increase translates into an additional €16 per month. Although this amount may seem small, it still represents €192 additional over the year. However, for many retirees, these amounts are insufficient in the face of rising costs, particularly in energy and food.

Purchasing power of retirees: a situation under pressure

With persistent inflation, retirees are feeling the pinch increase in basic necessities spending. The 1.6% increase in Agirc-Arrco provides support, but can be quickly absorbed by increases in fixed charges.

The effect of postponing the revaluation of basic pensions

Furthermore, the postponement of the revaluation of basic pensions, usually scheduled for January, to July 2025 adds additional pressure. Retirees must wait six more months to see their basic pension adjusted, which makes 2024 particularly delicate.

This postponement could therefore force many retirees to review their expenses, especially those who mainly depend on their retirement to cover their essential needs.

How to optimize your budget waiting ?

Faced with this situation, it is useful for retirees to look for ways tooptimize their budget to compensate for the gaps caused by the limited increase in pensions. Here are some tips to consider:

• Reduce energy costs : Insulating windows, lowering the thermostat a few degrees, or even using draft excluders for doors can reduce energy bills.
• Renegotiate insurance contracts : Taking stock of your home and health insurance can help reduce certain fixed costs. Comparing offers and negotiating with your insurer can help you save money.
• Search for available social assistance : Certain financial aid, such as the Solidarity Allowance for the Elderly (ASPA), can support low-income retirees. It may be a good idea to check your eligibility.
• Monitor heating aids : Communities sometimes offer specific subsidies or assistance for energy bills, especially during winter.

A limited increase which questions for the future

The 1.6% revaluation of Agirc-Arrco in 2024 is a reminder of the current challenges that retirees face. Indeed, in a context where inflation can fluctuate, retirees regularly find themselves in a situation of adjustment. With fixed costs on the rise and a pension that changes only slightly, it is increasingly difficult to maintain stable purchasing power.

The debate on increasing pensions is therefore likely to intensify, with more frequent requests for review. The question of whether the pension adjustment system can still be supported in this way could arise in the short term.

Increase of 1.6%: welcome but insufficient help

Although the 1.6% increase is good news for retirees, it remains modest in the face of current price increases. For many retirees, this increase will not fully offset rising expenses, particularly for those who rely primarily on their supplementary pension.

In the absence of a more significant increase, careful management of the budget and access to one-off assistance will be essential to maintain a comfortable standard of living.

The Agirc-Arrco system attempts to ensure a balance between the sustainability of its resources and support for the purchasing power of retirees. However, the current situation clearly shows that greater adjustments may be necessary to meet the expectations of retirees, particularly in periods of high inflation.