This is what you will soon receive!

French retirees are eagerly awaiting the next increase in their supplementary pension.

Good news: it is scheduled for November 4, 2024.

This date, initially set for November 1, was postponed due to the public holiday and the weekend.

But what can the 13.5 million beneficiaries of Agirc-Arrco hope for?

An increase expected between 1.2% and 2%

According to current estimates, the increase should be between 1.2% and 2%, depending on the inflation rate which currently stands at 2%. In concrete terms, this would represent:

• For an increase of 1.2%: a monthly gain of 6.19 euros on an average pension of 516 euros
• For a 2% increase: a monthly bonus of 10.32 euros on the same basis

These numbers may seem modest, but they are crucial for many retirees whose budgets are often tight.

Who decides on this revaluation?

The final decision results from a negotiation between social partnersi.e. the employers and the unions. The Agirc-Arrco board of directors then ratifies this decision. The criteria taken into account are mainly:

• The inflation rate
• The economic situation of the country

Interestingly, there is a 0.2% margin for adjusting the revaluation upwards or downwards, depending on economic circumstances.

Portrait of the Agirc-Arrco retiree

To better understand the impact of this increase, let’s take a look at the typical beneficiary:

• Average age: 73 years and 8 months
• Average pension: 516 euros per month
• 5.9% of retirees live abroad

Comparison with previous revaluations

It is always instructive to look in the rearview mirror. Here are the growth rates from previous years:

We note that rates have been particularly high in recent years, reflecting strong post-Covid inflation.

What about basic pensions?

Supplementary pensions should not be confused with basic pensions. The latter are revalued every January 1st, following the progression of the Harmonized Consumer Price Index (HICP). In 2023, they increased by 5.3%. The next increase will be determined at the end of 2024.

A tense political context

Pensions are still a sensitive topic in France. Recently, Economy Minister Bruno Le Maire proposed freezing civil servants’ pensions as part of a spending cuts plan. This idea was ultimately dismissed by Prime Minister Gabriel Attal, highlighting the complexity of the pension debate.

The calendar for the coming months

For retirees, here are the dates to remember:

• September 16, 2024 : Start of sending of Cnav letters informing of the revaluation
• September 25, 2024 (approximately): Catch-up payment for increases due since September 1, 2023
• October 9, 2024 : Start of monthly revaluation (on average 50.94 euros)
• November 4, 2024 : Official application of the new revaluation

A welcome catch-up

The catch-up payment scheduled for the end of September 2024 will be particularly appreciated by retirees. On average, it should amount to 600 euros, a significant sum that could help to cope with persistent inflation.

The specificities of supplementary pensions

It is important to remember some key points regarding the Agirc-Arrco supplementary pension:

• The revaluation is annualset for November 1st
• The amount of the supplementary pension is subject to a cap
• It concerns 13.5 million retirees in France

The importance of this revaluation

Although the percentages may seem modest, this increase is crucial for many retirees. For many, the supplementary pension represents a significant part of their monthly income. In a context of persistent inflation, every euro counts.

The challenges ahead

The French pension system, and in particular the supplementary scheme, faces several challenges:

• Aging population
• The financial balance of the system
• Adapting to new forms of work (freelance, multi-activity)

These issues could influence future revaluations and the very functioning of the supplementary pension system.

Waiting for November…

Retirees will have to wait until November 4, 2024 to see their supplementary pension increase. Until then, negotiations between social partners will refine the exact rate of revaluation. One thing is certain: this increase, whatever it may be, will be welcomed with relief by millions of French people who rely on this income supplement to maintain their standard of living in retirement.