The announcement of an increase in retirement pensions attracts the attention of many French people, especially in an often uncertain economic climate. Indeed, no less than 13.5 million retirees benefit from an increase in their supplementary pensions. This measure, far from being trivial, directly impacts their purchasing power and therefore deserves attention.
In this article, we will dissect this news, explaining the ins and outs of this increase. Stay with us to understand how this increase can change the daily lives of millions of people.
Revaluation of Agirc-Arrco supplementary retirement pensions
Agirc-Arrco supplementary retirement pensions were increased by 1.6% from November 4. Although this increase is lower than the previous year, it will impact around 13.5 million affiliated retirees.
For example, for a pension of 500 euros, beneficiaries will see their amount increase by around 8 euros per month. However, it is important to note that this revaluation does not fully offset current inflation, which is estimated at 1.8%.
Moreover, the increase is significantly lower than the revaluation of 4.9% observed in 2023which raises concerns among retirees about their purchasing power in the face of rising living costs.
Financing and calculation of supplementary pension
The financing of the Agirc-Arrco supplementary pension is based on monthly contributions paid by employees in the private sector and their employers, with a distribution of 40% for the employee and 60% for the employer.
This system ensures a supplementary pension upon retirement, which is added to the basic pension. The amount of this supplementary pension is calculated according to the value of the service point, currently set at 1.4386 euros.
Employees accumulate points throughout their career, and the more they accumulate, the higher their pension will be. This incentive method encourages workers to contribute more, thus guaranteeing a more comfortable retirement.
Changes in bonuses and penalties of the supplementary pension system
Since the end of 2023, significant changes have been made to pension schemes in France. The removal of the penalty, which led to a reduction in the pension for new retirees leaving at the legal age, was welcomed with relief by many future retirees.
At the same time, the bonus which rewarded policyholders who delayed their retirement by 2 to 4 years has also disappeared.
This bonus previously offered a substantial increase of 10 to 30% in supplementary pension for one year, thus encouraging workers to extend their activity. These changes now impact the planning of future retireess, pushing them to re-evaluate their choices regarding retirement age and the impact on their finances.
