The increase in pensions in 2025 is causing strong reactions among French pensioners. Initially scheduled for July, the increase in basic pensions was brought forward to January, but with an increase limited to 0.8%. This decision raises questions about the real impact on the purchasing power of retirees. Let’s take a closer look at the ins and outs of this measure.
The compromise found: a two-step revaluation
The government ultimately opted for a two-step approach for the increase in pensions in 2025:
- January 2025: increase of 0.8% for all basic pensions
- July 2025: additional adjustment based on observed inflation
This decision results from a arbitration between Michel Barnier and Laurent Wauquiezas clarified by Senator LR Pascale Gruny. The stated objective is to find a balance between the State's budgetary constraints and the expectations of retirees.
However, this revaluation limited to 0.8% in January raises concerns. In fact, it represents only half of the increase initially planned according to the regulatory formula based on inflation. This situation could lead to a temporary loss of purchasing power for many retirees.
The concrete impact on retirement pensions
To understand the real effect of this partial revaluation, let's take the example of an average pension of €1,662 net, according to DREES data:
| Component | Amount | Revaluation |
|---|---|---|
| Basic pension | 1 108 € | 0.8% in January |
| Complementary | 554 € | Not concerned |
With the initial regulatory formula providing for an increase of 2.2%, the overall pension would have reached €1,686. However, with the revaluation limited to 0.8%, it will only amount to €1,671. This difference of €15 per month may seem modest, but it accumulates over the yearimpacting the budget of retirees.
It is crucial to note that low-income retirees will benefit from special treatment. Those receiving less than €1,430 net (basic pension + supplementary) will be entitled to a double catch-up in Julythus mitigating the impact of the limited revaluation in January.
The challenges of revaluing pensions
The question of the revaluation of pensions is part of a broader context of management of the French social protection system. Employer contributions play a crucial role in financing pensions, but they are not enough to cover all needs.
The challenge for the government is to maintain the financial balance of the system while preserving the purchasing power of retirees. This complex equation takes into account several factors:
- Demographic evolution with the increase in life expectancy
- Economic fluctuations and their impact on revenues
- The need to guarantee decent pensions
In this context, some retirees are considering additional solutions to maintain their standard of living. Active retirement is becoming an increasingly popular option, allowing you to combine pension and paid activity.
Future outlook and adjustments
The revaluation limited to 0.8% in January 2025 is only one step in a continuous adjustment process. The government has committed to reassessing the situation in July, based on the actual inflation observed. This flexible approach aims to correct any discrepancies between the initial increase and the actual change in the cost of living.
It is also important to note that regional disparities in pensions persist. Some departments offer higher pensions, reflecting differences in cost of living and professional careers depending on the region.
Ultimately, the revaluation of pensions for 2025 raises debates on the fairness and sustainability of the system. If the increase limited to 0.8% in January may seem insufficient for some, it is part of a broader strategy aimed at perpetuating the pension system. Retirees and future retirees will need to remain attentive to upcoming adjustments, while possibly exploring additional options for secure their financial future.