Amount of pensions, retirement age… pension reform brings about many changes. (photo credit: Shutterstock)
Around fifteen decrees relating to pension reform have been published in the Official Journal since the summer of 2023. Reduction of the legal retirement age, extension of the required contribution period, elimination of the main special schemes, revaluation of the pension minimum, expansion of the progressive retirement system, revision of the combination of employment and retirement… Overview of the major changes applied since September 1, 2023.
Summary:
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The gradual increase in the legal retirement age
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Full-rate retirement: contribution period lengthens
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Pension reform: the abolition of most special schemes
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The revaluation of minimum retirement pensions
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The revision of the employment-retirement combination
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The extension of the progressive retirement system
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An increase in retirement pension for certain mothers
The gradual increase in the legal retirement age
This is a flagship measure of the pension reform carried out by the government: gradually raising the legal retirement age. Three additional months of work are required each year. The objective is to reach the legal age of 64 by 2030. Thus, since September 1, the pivotal age has increased from 62 to 62 years and three months for anyone born from September 1 1961. The next three-month extension comes in a year.
To know
– People who started working before the age of 16 can retire at 58.
– People who started working before the age of 18 can retire at 60.
– People who started working before the age of 20 can retire at 62.
– People who started working between the ages of 20 and 21 can retire at 63.
The pension reform adjusts the “long careers” system, as follows:
For all long careers, the minimum contribution period is set at 43 years.
Full-rate retirement: contribution period lengthens
The increase in the legal retirement age is associated with an extension of the contribution period necessary to be able to benefit from a full-rate pension. This extension already existed as part of the previous pension reform. However, the pace has been faster since September 1, 2023: each year, you must have contributed three months more to qualify for full retirement. This applies until 2027, to reach 43 years of contributions within four years (compared to 42 years until then).
To note
The age for cancellation of the discount remains set at 67 years. So, if you are 67 years old and have not contributed enough annuities in your professional life, you can retire at full rate.
Pension reform: the abolition of most special schemes
The four main special pension schemes disappear with the recent pension reform. These are those of the RATP, the electricity and gas industries, the Banque de France, and employees and notary clerks… From now on, new hires in these schemes are automatically affiliated to the general scheme.
To note
The autonomous regimes (liberal professions and lawyers) remain. Certain specific regimes also remain: for sailors, staff of the Paris Opera or those of the Comédie-Française.
The revaluation of minimum retirement pensions
From September 1, employees, artisan traders and farmers benefit from an increase in their minimum retirement pension. To do this, they must provide proof of a complete career at the minimum growth wage (SMIC). The increase is 100 euros gross per month, for a pension of 848 euros.
The revision of the employment-retirement combination
Around 500,000 French people are affected by the combination of employment and retirement, according to the INSEE Employment survey, published in 2020. Since September 1, if you resume an activity while you are retired, you may be able to claim to new rights. Certain conditions must be respected and the new rights apply at the end of your combined employment and retirement. This is a second pension calculated “on the basis of the same rules as the first pension”, according to the Ministry of Labor.
The extension of the progressive retirement system
The progressive retirement system allows you to reduce your professional activity and receive part of your pension “from two years before the legal age”. Until now reserved for employees, artisans and traders, it is now extended to civil servants, liberal professionals and lawyers.
An increase in retirement pension for certain mothers
Some mothers exceed the 43 year minimum contribution one year before the legal retirement age. This is possible thanks to the quarters validated for maternity and child rearing. From now on, they can retire at full rate once they have reached 43 years.
To remember
The pension reform extends the increase in retirement pensions (+10%) from the 3rd child, for the liberal professions and lawyers.
Redemption of quarters: how to do it?
You can estimate these costs on the
Retirement Insurance simulator
. Then, you submit a request to buy back quarters by completing and returning the form provided by your CNAV (National Old Age Insurance Fund). Your file is processed within two months.
– the redemption option chosen (the 2nd is more expensive).
– your income (the higher it is, the more expensive it is),
– your age (the younger you are, the cheaper it is),
Whatever happens, you will be able to redeem a maximum of 12 quarters. The cost of redemptions varies depending on:
– for the rate and duration of insurance used to calculate your retirement (to possibly increase the level of your pension).
– for the rate alone (to reduce or cancel the discount),
Two quarter redemption options exist:
– have worked the required number of quarters. It is possible to buy back quarters, either for years of higher education (validated by a diploma), or for so-called incomplete years (due to periods of uncompensated unemployment or internships).
Or
– have worked until the legal retirement age
To receive a full retirement pension, you must: