5 points to remember about pension reform
Speaking on Tuesday 10 January, Elisabeth Borne confirmed a gradual shift in the retirement age to 64 in 2030 to “ensure the balance of the system”.
Raising the retirement age to 65 was a key measure in Emmanuel Macron’s program. Eventually, the statutory retirement age is only 64 years, which does not prevent the left-wing parties, the Reich Party Congress and all trade unions from taking a firm stand against this reform. A strike is already planned by the unions for January 19th. However, with this reform, the state will be able to fill the 13.5 billion deficit that the pension system would have experienced in 2030. Economics and Finance Minister Bruno Le Maire confirmed this This reform will bring almost 18 billion euros to pension funds in 2030. This leaves more than EUR 3 billion that will be used to finance support measures, ie early retirement due to disability or invalidity.
1. The statutory retirement age is gradually being pushed back to 64 years
From 1is From September 1st, the statutory retirement age will be gradually increased by three months per year to 64 instead of 62 in 2030. This means that at the end of President Macron’s five-year term, you must be 63 years and 3 months old to retire. Depending on your situation, here is a simulator created by the public interest group Info Retraite to see what applies to you or what changes or not: suisjeconcerne.info-retraite.fr.
2. The extension of the contribution period brought forward to 2027
An interim measure, the 2014 Touraine law, already provided for an extension of contributions for people born in 1973. This measure provided for contributions for 43 years from 2035 to reach a full pension. As of 2027, individuals must now contribute 43 years to receive this precious full pension.
3. Long Career Rule
This annex to the postponement of the statutory retirement age makes it possible to protect careers that started young, i.e. “thatno one who has started work early is obliged to work more than forty-four years”. The minister made it clear that the retirement age will remain at 58 for young professionals before the age of 16, at 60 for young professionals between the ages of 16 and 18 and at 62 for young professionals before the age of 20.
4. Termination of the main special diets
Elisabeth Borne explained that “new hires at RATP, in the electrical and gas industries and at the Banque de France” will be included in the general pension system. In addition, the government wants to create a “senior citizens’ index”, which employers are very displeased with. In fact, France is one of the countries in Europe where the over-60s work the least, so the ‘Senior Citizens’ Index’ would allow for a more flexible transition between work and retirement. The Prime Minister made it clear: This is how we enable those who want to go part-time two years before the statutory retirement age by liquidating part of their pension. We will also make it easier to reconcile work and retirement and create new rights« .
5. Upgrading of “small pensions”
The minimum pension for full-time employees will be raised to 85% of the minimum wage. This represents “almost 1,200 euros a month starting this year “For future retirees as well as for current ones with a full career,” said Elisabeth Borne on Tuesday. She added that this measure will be very good for many of our seniors, adding: “Nearly two million small pensions will be increased”.