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Retirement: the deductions that affect your pension the most

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How can we forget the massive mobilization of retirees, after the rise in the CSG? In 2018, the President of the Republic indeed decided to increase the general social contribution, a tax which rests in particular on pensioners but not only, by 1.7 points. A measure, recalls Climb (ex-TacoTax) which above all benefited employees, since it was accompanied by the abolition of unemployment and sickness contributions. But for the insured, this then meant increasing their taxes… but not their level of remuneration. For a person receiving 3,000 euros per month, this represented a loss of 600 euros per year.

Fortunately for retirees, the then executive had ended up backing down. Faced with the anger of retirees, supported by the movement of Yellow Vests, the reform of the CSG was finally removed. In fact, the increase continued to apply for a time, but was then reimbursed by check, said the Minister of Labor at the time, Muriel Pénicaud. That being said, it is important to remember that retirees have to deal with many other deductions which, combined, considerably reduce the amount of the pension. Summary of the most important ones you should know.

Two other contributions exist. They both weigh on the pensions of retirees, informs the newspaper Pleine-Vie on its site, which lists all the charges to be taken into account at the time of cessation of activity.

The first is none other than the social debt repayment contribution (CRDS), paid by all taxpayers subject to the CSG. It is not deductible from taxable income when calculating tax and its rate is set at 0.5% on 2021 emoluments.

There is also the additional solidarity contribution for autonomy (CASA), which aims to finance expenses relating to the loss of autonomy of the elderly and/or disabled. It is a contribution, the rate of which is set at 0.3%, which is only paid by retirees subject to the CSG (median rate or normal rate).

Of course, most retirees are also subject to income tax… as are the majority of taxpayers. Since 2019, the deduction of the amount due to the General Directorate of Public Finance (DGFiP) is managed directly as part of the withholding tax. Consequently, this means that retirees receive a pension automatically reduced by the tax to be paid, on the basis of the rate declared by the tax household.

That being said, this does not mean that it is no longer necessary to declare your income. The campaign, open since April 7, 2022, will end soon. It is therefore important to act quickly, because this is what allows the tax authorities to calculate the precise amount that will have to be paid and therefore, potentially, to make any necessary refunds.

Beyond the contributions and the only tax (as well as all its possible local variants or not) required from retirees, there are certain contributions, continues Pleine-Vie. One, in truth, specifies the specialized newspaper.

This is indeed the sickness contribution. It concerns all those insured under the local compulsory supplementary health insurance scheme in Alsace-Moselle. However, pensioners exempt from CSG do not have to pay it.

Former employees, if they have contributed to Agirc-Arrco, must also pay a health contribution, the rate of which is 1% on the gross amount of the pension.

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