Retirees: this controversial allowance to which you are entitled


It has sometimes been decried, but it still exists. Him ? This is the standard 10% allowance that you must apply to your retirement pension when declaring your income.

In fact, if you are retired, you benefit from very specific taxation. In fact, the gross income that you receive (mainly that from your pension) is subject to a lower general social contribution than when you were active and almost 100% cleared of social charges.

In detail, this 10% allowance is automatically applied by the tax authorities. It allows you to benefit from a minimum deduction of 394 euros per person on your pension with a ceiling per tax household set at 3,858 euros. A welcome deduction at a time when consumer prices continue to rise.

But this 10% reduction comes at a cost. It constitutes one of the mechanisms which weighs the heaviest in the expenditure of the State. This is how in 2020, the cost of this niche flirted with 4.5 billion euros for the State. Which niche nevertheless helped no less than 14.5 million tax households in 2019.

Some opponents of this abatement argue that retirees benefit from this 10% abatement on the amount of their pensions whereas, unlike employees, they are not forced to pay professional expenses.

So far, the abolition of this reduction may be back on the negotiating table, but the mechanism has never been questioned. The government considering that it aims to “reduce the tax burden of taxpayers holding pensions, retirement or annuities”. In particular, “those with modest or average incomes”.