The government has decided to postpone the revaluation of retirement pensions until July 2025. To compensate, an exceptional check could be granted to low-income retirees. Are you affected by this aid and how much is it?
The beginning of October was marked by an announcement that caused quite a stir: the government plans to delay the revaluation of retirement pensions. In fact, instead of being applied in January 2025, this increase will be postponed to July of the same year. This decision aims to reduce the public deficit by several billion euros, but it could weigh heavily on retirees' budgets. To compensate for this loss of purchasing power, the executive is considering a exceptional check for the most modest households.
The temporary freeze on retirement pensionsaccording to projections, could save around 4 billion euros for the State. This measure targets basic pensions, which are normally increased each year in line with inflation, thus providing retirees with support to cope with the increasing cost of living. But by postponing this revaluation, retirees will directly suffer the impact of inflation for six months, without any adjustment to their pensions.
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Which retirees will be entitled to this exceptional check?
According to Capitalto counter this loss of purchasing power and temporarily relieve retirees, the government would consider sending an exceptional check to seniors most in financial difficulty. This initiative is reminiscent of a measure taken in 2014 under the government of François Hollande, which introduced an exceptional bonus of 40 euros for retirees receiving less than 1,200 euros per month. This bonus had been criticized for its limited effect, highlighting the difficulty of compensating financial losses significantly with one-off aid.
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The government plans to grant this exceptional aid to the most vulnerable retirees. According to information from 20 Minutes, only retirees receiving a pension of between 1,300 and 1,400 euros per month could receive this check. This aid, of which amount is estimated between 100 and 150 euroswould be intended to mitigate the effects of the absence of revaluation during the first six months of 2025. Retirees considered “average”, with a monthly pension of 1,400 to 2,000 euros, as well as those with higher incomes, are not targeted by this aid. The loss linked to the freezing of pensions could thus reach around 150 to 400 euros depending on the pension level, with no compensation provided for these categories.
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A truly effective measure?
This measure provokes contrasting reactions. If the check could offer welcome assistance to the most modest retirees, some parliamentarians and associations believe that this is a “bandage on a wound” and that this sum will not be enough to compensate for the loss of purchasing power caused by the pension freeze. In addition, this system could create tensions between the different categories of retirees. Those who do not meet the conditions to benefit from this assistance risk perceiving this measure as unfair. A difference in treatment which could cause frustration among retirees with incomes slightly above the set threshold.
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The Minister of the Budget, Laurent Saint-Martin, recently expressed his desire to protect small pensions. Guest of France 2, he raised the possibility of setting an income threshold below which pensions would not be frozen. However, such a measure has a cost, estimated at several hundred million euros, and will have to be the subject of intense parliamentary debates in the weeks to come. In this context, the government is exploring various avenues to support low-income retirees without giving up the objective of budgetary savings. In addition to the exceptional check, a differentiated revaluation, like that practiced during the health crisis in 2020, is also envisaged.. However, implementing such a measure poses technical and administrative challenges, and may require more time to become operational.
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