Many of them could retire in 2022. And for good reason ! Each year, between 600,000 and 700,000 individuals liquidate their rights according to the National Old Age Insurance Fund (Cnav), as Planet has already been able to explain. In the weeks and months to come, this number could increase considerably, due to recent statements by Emmanuel Macron, before and after his re-election at the Elysée. The President of the Republic has indeed undertaken to reform pensions quickly. Probably too quickly for some, since it evoked a gradual postponement of the legal retirement age from the beginning of 2023. It provides for a relatively sustained pace since it will be necessary to work three more months per year, until 2032.
Historically, explains the economist Philippe Crevel in our columns, this kind of announcement regularly causes hasty departures. This was the case in 2003, it was also the case in 2010. That being said, it is important to remember that retirement must be prepared… Which implies in particular taking a certain number of tax and declarative provisions. You must inform the administration of your change of status!
The year of retirement is usually accompanied by higher incomes, due to the compensation received by former workers.
The transition from professional activity to retirement therefore implies the declaration of the latter, which can result in higher taxation over a year. In some cases, however, it is exempt from taxes, specifies the specialized site La Retraite en Clair. This is true for all those who voluntarily leave their retirement as part of a social plan or for those who go on early asbestos retirement. In these two cases, it is not necessary to declare it. Those fired by their employer only benefit from a partial exemption, depending on the exact amount of the exemption.
Finally, last hypothesis: you are voluntarily retiring outside the social plan. It is then necessary to declare the entire indemnity, which will be taxed from the first euro, in the spring of the year following retirement. To limit damage, it may be appropriate to opt for the quotient system.
Very often, a retirement is accompanied by the liquidation of the capital acquired by savings. It is then a question of granting oneself a welcome additional income, given the drop in purchasing power observed by the pension authorities. However, such tax arrangements must be disclosed.
It is also necessary to inform the General Directorate of Public Finance of the payments made up to the date of retirement, continues La Retraite en Clair. In theory, continues the platform, the managing bodies will have already transmitted the information to the administration, but it must still be informed of any capital outflow or any new retirement savings annuity.
Another important point: it is also necessary to alert the General Directorate of Public Finance to the expected drop in income once the cessation of activity has occurred. Because of the replacement rate, which Planet has already had the opportunity to report, it is not possible to earn as much in retirement as during the time of working life with your pension alone.
These elements are important to keep in mind, because it means that it will be necessary to update its withholding tax rate to remain consistent with its new living environment, insists La Retraite en Clair. At the risk, otherwise, of paying more than necessary…