Pension reform raises many questions, particularly concerning the starting age and the number of quarters required. Many wonder if it is still possible to retire at 62 with only 120 quarters of contributions. Let's look at the implications of this situation and the options available.
Impact of the reform on the legal age of departure
The recent pension reform has changed the rules of the game for many French people. The legal retirement age will gradually increase to 64 by 2030. This development raises concerns among those who hoped to leave earlier.
For people born before September 1, 1961, it is still possible to retire at age 62. On the other hand, for those born after this date, the new legal framework applies. It is vital to prepare your retirement application taking these new provisions into account.
Here is a table summarizing the evolution of the legal age:
| Year of birth | Legal age of departure |
|---|---|
| Avant 1961 | 62 ans |
| 1961 (after September 1) | 62 years and 3 months |
| 1962 | 62 years and 6 months |
| 1963 | 62 years and 9 months |
| 1964 | 63 ans |
| 1965 | 63 years and 3 months |
| 1966 | 63 years and 6 months |
| 1967 | 63 years and 9 months |
| 1968 and after | 64 ans |
Consequences of early departure with 120 quarters
Retiring at age 62 with only 120 quarters of contributions can have significant repercussions on the amount of the pension. Consequently, the system provides for a discount for missing quarterswhich can significantly reduce income in retirement.
The discount applies as follows:
- A reduction of 0.625% per missing quarter
- Calculated on the basis of 50% of the average annual salary
- Capped at a minimum rate of 37.50% after haircut
In the case of starting with 120 quarters instead of the 169 required (for a person born in 1962 for example), the discount would be notable. Nevertheless, the floor rate of 37.50% would apply, thereby limiting the financial loss.
Alternatives and Options to Consider
Faced with this situation, several alternatives deserve to be examined:
- Extend your activity : Continuing to work would allow you to accumulate additional quarters and improve the amount of your future pension.
- Redeem quarters : This option can be considered to fill part of the deficit, although it represents a significant financial investment.
- Examine long career schemes : Certain profiles may benefit from early departure conditions.
- Opt for gradual retirement : This solution allows you to reduce your working hours while starting to receive part of your pension.
It is crucial to choose the right time to retire in order to maximize your rights and ensure a peaceful transition to this new stage of life.
-Planning your retirement in the current context
Pension reform has complicated individual choices regarding the end of their career. It is now more necessary than ever to plan your retirement carefully. This involves:
1. Take a precise assessment of your situation (quarters of contributions, age, income)
2. Stay informed regularly about legislative developments
3. Consult a retirement advisor to evaluate the different options
4. Anticipate administrative procedures, which can take several months
Ultimately, although retiring at age 62 with 120 quarters is technically possible, this would result in a sharp reduction in pension. It is preferable to look for all alternatives to optimize your situation and make an informed decision as to the ideal time to stop your professional activity.
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