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How much will you lose with the postponement of the revaluation?

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Bad news has just fallen for seniors regarding their pensions. The government has decided to postpone the revaluation of their basic pensions. A measure that will seriously affect their income, according to several estimates.

Policyholders will therefore have to face significant financial sacrifices for a long time. But how much will they actually lose because of this discrepancy? Let’s analyze l impact why delay on the daily lives of millions of French people.

Postponed revaluation of retirees

The State has made a decision which risks undermining the purchasing power of retirees. Initially planned for the beginning of 2025, the revaluation of pensions is postponed for six months. Policyholders will therefore have to wait until next July to see an increase in their income.

Why such a decision? This measure is part of a government plan aimed at save money in the order of 60 billion euros. To achieve this objective, the State then chose to involve different actors, including retirees. By delaying the increase in pensions, the government hopes to raise nearly 3 billion euros.

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The idea behind this deferral of revaluation is based on the indexation mechanism, which depends on the level of inflation. So, if the current downward trend continues until July, the increase may not be significant. This arouses both anger and concern among retirees.

Decision which is not without consequences

The six-month postponement of the revaluation of pensions will not fail to have consequences on the budget seniors. Until next July, retirees will have to face an increase in prices without seeing their income increase.

While the government justifies this decision by economic imperatives, the daily reality of retirees risks deteriorating. THE loss of earnings is indeed real. This situation could force them to reduce their current expenses and abandon certain projects.

According to our colleagues at Capitalthe question on the rate of the next increase will be discussed in the National Assembly during the study of the budget.

Big loss on pensions

The postponement of the revision of basic pensions undoubtedly results in a shortfall in earnings. What is worrying is that the loss could exceed 150 euros for many retirees. An amount which, with this increase in the cost of living, can have a considerable impact on their purchasing power.

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To illustrate this situation, let us take the estimate of the revaluation rate of Capitalwhich amounts to 1.8%. Here is the case of a senior receiving a net pension of 1,400 euros per month. With a revaluation of 1.8%, it would benefit from a monthly increase of 17.64 euros. Consequently, this six-month gap will cause him to lose 105.84 euros.

The loss becomes even more significant for those whose pensions are higher. Let’s analyze the case of a former worker receiving 4,000 euros in monthly pension.

With a revision of 1.8%, he will gain an increase of 25.92 euros more on pensions. In this case, the loss reaches 55.52 eurosa significant amount in a tense economic context.

Source : Capital

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