Update on the pension reform: focus on the changes planned from September 1
The pension reform will come into effect on September 1. Here is what will change from this date.
Despite the setbacks, the pension reform envisaged by Emmanuel Macron since his first term was finally adopted. Indeed, the amending social security financing law (LFRSS) for 2023 was enacted on April 15, 2023 . It is through this text that the government introduced the pension reform.
The flagship measure and also the most contested in this law is the postponement of the legal retirement age from 62 to 64 . The entry into force of this text will be from from September 1st . Here is the people affected by this reform from that date and what will change for them.
Pension reform: doubts for seniors
Those who are already retired do not have to worry about postponing the legal retirement age . For the youngest also, the reform will pass more easily. The doubts concern rather the seniors who are close to retirement , elderly people who have certainly already planned to leave in a few months .
These doubts, Rémi Salin, former bar-tabac manager, testifies. This senior had already planned everything for his retirement on September 1. However, with the pension reform which begins to take effect on September 1 , he questions everything. In an article by TF1 Info published on May 11, Rémi Salin wonders:
'If I have to go on a little longer, I honestly don't know how to do it.'
There are many people in the same situation as Rémi. To dispel any doubts, here the first people affected by the pension reform .
Who are the first concerned by the reform?
As mentioned above, the entry into force of the pension reform is scheduled for September 1 . On this date, two categories of people will be affected by the reform. Here they are :
Employees born between September and December 1961
Setting up the shift legal retirement age is done in 3 month increments . In a previously quoted TF1 Info article, Valérie Batigne, retirement advisor at Sapiendo, explains it as follows:
“The legal age is pushed back by three months every year. The 1961 generation: + 3 months. The 1962 generation: + 6 months. And so on until the 1968 generation: + 2 years”.
Thus, between September and December 2023, the legal retirement age is 62 years and three months . This implies that the 1961 generations born from September 1 are the first affected by the pension reform. For these people, two possibilities are available to them.
First of all, they can retire at 62 , but with a lower pension. Unless they are affected by the early retirement scheme for long careers. A device which is extended by the pension reform according to an article by AGIPI .
“While the early retirement age for long careers will also be gradually extended by two years, the LFRSS 2023 puts in place four systems instead of two. Can we read in the article of AGIPI.
The second choice available to this generation is to work 3 more months as dictated by law .
Retirees with modest pensions
From September 1, another device of the pension reform affects all retirees with modest incomes. Indeed, this law provides that from its entry into force, the global pension of all retirees must be equivalent to 85% of the net minimum wage . More specifically, this means that all pensions below 1200 euros will be revalued.
However, it should be noted that this measure only applies to retirees who have completed their terms. That is to say that they have “validated at least 120 quarters (30 years) under the general social security system” according to the AGIPI article. This revaluation is of variable amount between 25 to 100 euros per month.
According to statistics, this revaluation concerns approximately 1.8 million retirees for the month of September. However, it will only affect the portfolios of beneficiaries in October .
Pension reform: an online simulation to dispel doubts
The pension reform, as its name suggests, has turned everything upside down. If you are concerned about your next retirement date without a discount, know that there are online simulators such as this one: suisjeconcerne.info-retraite.fr.
Sources : tf1info.fr , retraite-agipi.com
source: foozine.com
