Agirc-Arrco, the supplementary pension plan for private sector employees, recently announced an increase in pensions for November 2024. This increase, although positive, will be less significant than that of the previous year:
- Rate of increase: 1,6%
- Effective date: November 4, 2024
- Beneficiaries: all retirees from the Agirc-Arrco plan
For a retiree receiving €2,500 per month, this increase will result in a increase of around €40 per month. Although modest, this revaluation will help maintain purchasing power in the face of inflation.
It is vital to note that this increase is lower than the inflation rate, estimated at 2% for the year 2023. This difference is explained by the application of a sustainability factor of 0.4 points, aimed at preserving the financial balance of the pension plan.
Postponement of the revaluation of basic pensions
Unlike previous years, the revaluation of basic pensions will experience a significant change in 2025:
| Aspect | Detail |
|---|---|
| Usual date | January 1 |
| New date in 2025 | July 1 |
| Reason for postponement | Reduction of the budget deficit |
This six-month postponement will have a significant impact on the finances of retirees. The revaluation will not be retroactivewhich means that pensioners will have to wait until the middle of the year to benefit from this increase. In addition, the rate of increase risks being lower than that which would have been applied at the start of the year.
This government decision is based on the conclusions of the Retirement Orientation Council (COR), which estimates that the majority of retirees are not in a precarious situation. However, this measure raises concerns about the evolution of the purchasing power of seniors.
Overall impact on a pension of €2,500
For a retiree receiving €2,500 per month, the combined effect of these two increases will be felt gradually:
- November 2024: increase in the Agirc-Arrco share (+around €40)
- July 2025: revaluation of the basic pension (rate still undetermined)
It is important to emphasize that less than 15% of French retirees receive a pension of €2,500 or moreaccording to data from Drees. These retirees, often former executives, will benefit from a larger increase in absolute value than those receiving more modest pensions.
However, the overall increase for the year 2025 will be less significant than that observed in 2023, where the increase reached 4.9%. This difference of 3.3 points represents a significant shortfall, particularly for retirees with more modest incomes.
Perspectives and challenges for the future of pensions
The 2023 pension reform, although having pushed back the legal retirement age, also introduced upgrading mechanisms for certain categories of retirees. Nevertheless, demographic and economic challenges persist:
- Financial balance retirement plans
- Adaptation to developments in the labor market
- Maintaining purchasing power in the face of inflation
The social partners and the government will have to continue to negotiate to find a balance between sustainability of the retirement system and the preservation of the standard of living of retirees. Future increases will be crucial to maintaining intergenerational equity and ensuring a dignified retirement for all French people.
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