Pensions: minimum wages, new services, major changes in 2023

Many changes take place with each new year. Regarding pensions, here are the main changes for this year 2023.

One person cannot work until the end of his life . At a certain age, our body needs rest. It is not because we no longer work that we no longer need to feed ourselves. So even in retirement we always need the income for our need .

This phenomenon is the foundation of the pension system . Since we can no longer work, we must contribute and save during our active period. It is this system that the state codified as law . As a right, this system evolves . Here are the changes for 2023.

Revaluations on the amount of the pension

Given the decline in purchasing power, last year, the price of the basic retirement pension has been upgraded twice . The first was 1.1% and the second 4%. For this year, from January 1, 2023, a revaluation of 0.8% will apply to the basic retirement pension . This last revaluation concerns the following funds:

• The National Old Age Insurance Fund (Cnav),
• The National Fund of Local Authority Agents (CRNACL),
• The State Pensions Service (SRE),
• The National Old-Age Insurance Fund for the Liberal Professions (CNAVPL).

In total, this revaluation concerns 14 million seniors . For supplementary pensions, we do not yet know when they will be upgraded. On the other hand, according to the information relayed on the Center Presse site, published on January 6, 2023: “the increase is around 5% for 2023” .

Increase in the thresholds for subjecting social security contributions

It is not only the amount of pensions that is revalued . As at the beginning of each year, the ceiling which defines the subjection and the exemption from certain social security contributions is increased . Indicate in a circular of December 19 from the National Old Age Insurance Fund (Cnav), the ceiling for subjecting the following contributions will be revalued by 1.6% compared to last year . Here are the relevant social security contributions:

• The general social contribution (CSG),
• The social debt repayment contribution (CRDS),
• The solidarity contribution for autonomy (CASA)

This is good news, because the more the ceiling amount increases, the number of exempt people is also increasing .

Change of the minimum wage to validate a quarter

To calculate the amounts of pensions, the number of validated quarters counts. It's necessary a minimum income of at least 150 times the amount of the gross hourly minimum interprofessional growth wage (Smic), to validate a quarter.

For this year 2023, the value of the hourly minimum wage is fixed at 11.27 euros . Thus, the amount of the salary that will validate a quarter is 1,690.50 euros. That is 11.26 euros × 150. That in the number of quarters, to receive a full pension, it would take 160 to 172 quarters according to your year of birth.

Evolution of pensions 2023: where is the reform?

One of Emmanuel Macron's flagship projects, the first application of the pension reform should apply this year . According to the government's timetable, the first pension reform measures should come into force in the summer of 2023. However, nothing is certain, on January 10, Prime Minister Élisabeth Borne should outline the main lines of the reform .

The text of the reform project will be debated in Parliament by the end of January. We are not going to go into the great details of this reform, the most important measure is the postponement of the legal retirement age to 64 or 65 . Currently, the legal retirement age is 62.

For the pension reform that Emmanuel Macron has prepared since his first mandate , this year 2023 will be decisive. Regarding the new legal retirement age, consultations with the social partners are still in progress .

Reform, validation of quarters, contributions... many things will change this year . Most of these changes are good news for your wallet. In addition to this good news, new online services are also available in 2023 . These new online services will make your life easier. In just a few clicks, you can declare your children .

Better still, on the site of the retreats, new simulators provide access to the pensions website .

Source : Centrepresseaveyron