Retirement pensions: towards a minimum of €1,200 per month? For who ?

During the presentation of the future pension reform, Elisabeth Borne evokes the decline in the legal age and retirement pensions.

The ins and outs of pension reform were to be presented in full on December 15 . But it will ultimately be necessary to wait until January 10 to discover all the details. Nevertheless, the government has already unveiled the main lines of the future reform . A subject that should be much discussed. What is it exactly ? Who will benefit ? We explain everything to you in this article.

Quid of the minimum pension of 1,200 euros?

In the pension reform project, the executive wanted to make a gesture for small pensions . During Emmanuel Macron's presidential campaign, the amount of the minimum pension was discussed at 1,100 euros. At the time, this figure should increase the purchasing power of retirees . But because of the rising inflation, Olivier Dussopt, Minister of Labour, explained that it was necessary at all costs review this amount .

Also, at the end of this reform, the minimum retirement pensions for a full career of 980 euros will be revalued to 1,200 euros . In other words, the contributory minimum now stands at 85% of the minimum wage, if assessed at 75%, at present .

Thus, it will be necessary to contribute a sufficient number of quarters. Indeed, such a pension will only be awarded to retirees who have validated a full retirement. And this, when these will have liquidated all their pensions (basic pension and supplementary pension).

Who will benefit from the reform of the retirement pension at 1,200 euros?

Olivier Dussopt indicated that the revaluation of retirement pensions should concern 25% of retirees , the majority of whom are women. As soon as this measure is implemented, the retirees targeted will be able to acquire better purchasing power .

Selon Elisabeth Borne, this reform will start in June 2023 . It targets retirees who are on the eve of retirement. This will apply “from the generation born in the second half of 1961” . However, in theory, these should already be able to complete their career , next summer.

But the Prime Minister affirms that the reform will take place gradually .

“It is not a question of saying that overnight, we go from 62 to 64 or 65 years old. The people concerned, born in 1961, will work a few more months before they can reach the legal retirement age.

From now on, you will have to work more , because, as Elisabeth Borne argues, 'the gradual increase in the retirement age from 62 to 65 by 2031 is what will bring the system back to equilibrium within ten year '.

A decision that is not unanimous

This revaluation should concern all retirees . But that is no longer the case.

Government statements , also mean that current retirees will not be entitled to this increase in retirement pensions . This is a shock for seniors who are struggling with the dizzying rise in prices.

Is it fair to abandon these pensioners to their fate, in full inflation? After all, the measure will still cost the State 2 billion euros . But according to the unions, this is not enough.

“From the start, it was a false announcement (…) the government seeks above all to save money”, protests the secretary general of the CGT in charge of pensions, Catherine Perret.

Elisabeth Borne is open to suggestions from the social partners . If they could offer 'another way' to balance the pension system , the executive would study it. But the head of government is firm on the reduction in the amount of pensions and the increase “in the cost of labor through additional contributions” .

The Prime Minister then recalled that:

“There is a right to demonstrate, but it is important to make it clear to the French that this reform is necessary to save our pension system. I also see that they are very attached to the question of purchasing power. If we do not carry out this reform, it is clearly announcing to retirees that tomorrow they will have a weakened purchasing power. »

Source : Economy stores