the Minister of Labor “poses a real question” according to an economist, for whom taxing only retirees above 2,500 euros “would be more reasonable”

Astrid Panosyan-Bouvet raised the possibility of a contribution from certain retirees to finance the social security budget.

Published on 21/01/2025 20:45

Reading time: 2min

Minister of Labor Astrid Panosyan-Bouvet, January 3, 2025. (MATHILDE KACZKOWSKI / HANS LUCAS via AFP)
Minister of Labor Astrid Panosyan-Bouvet, January 3, 2025. (MATHILDE KACZKOWSKI / HANS LUCAS via AFP)

For Alain Villemeur, doctor of economic sciences from -Dauphine University, the Minister of Labor, Astrid Panosyan-Bouvet, poses “a real question” when she mentions, Tuesday January 21, the possibility of a contribution from certain retirees to finance the social security budget. After the idea mentioned by the Minister of Labor of taxing some of the retirees, Matignon tempered these remarks, speaking of a “personal position” of the minister.

The scientific director of the Demographic Transition – Economic Transition chair at the university explains that around 40% of retirees receive more than 2,000 euros per month and that around 30% of retirees receive more than 2,500 euros. Based only on those who receive more than 2,500 euros, that represents around five million retirees. “If we tax these retirees in a relatively modest way, it could represent 500 to 800 million euros each year”continues Alain Villemeur.

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According to him, “whether we should continue in this direction”SO “it would be more reasonable to tax retirees above 2,500 euros”. He explains his position by the fact that “retirees who are housed in nursing homes must spend between 2,200 and 2,500 euros per month”. It would therefore be “very annoying” according to him, “to reduce the purchasing power of retirees who face entry costs into nursing homes”.

The minister's proposal could therefore be better designed “as an emergency measure, of solidarity of retirees with regard to the significant deficit in social protection”. But beyond that, the doctor of economic sciences believes that it “we must tackle the problem of financing nursing homes” et “from addiction in the next ten years”. “There are going to be more and more people dependent and we are going to face increasing costs“, he continues before adding: “We must consider sustainable financing for loss of autonomy”.

Funding which, according to him, should in any case not rely on the youngest: “We can find other levers but I think we must eliminate any solution that would make the younger generations contribute more”often in financial situations “more difficult” than those of retirees, he recalls.


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