Does your standard of living correspond to that of an average retiree?

At the end of 2017, France had 16.2 million retirees, i.e. 108,000 more than in 2016. In its latest panorama of retirement in France, the Research Department for Evaluation Studies and statistics (Drees) has published figures on the standard of living of the French. While these figures date from 2017, they nevertheless shed essential light on the situation of seniors in France. According to these figures, at what stage is your standard of living? Does it correspond to that of an average retiree?

The publication of the latest DREES report is clear: pensions represent a major and essential expenditure item in the context of social protection. In fact, 314 billion euros, or 13.7% of GDP, were spent during this year to cover the field of pensions. We therefore observe an increase in the number of retirees compared to 2016 with 71,000 more people, which represents a decline over the period 2010-2015. On average, the seniors concerned stopped working at the age of 62.1, i.e. one year and seven months longer than in 2010.

Upon retirement, it was notified that a French retiree receives, still on average, a pension estimated at 1,496 euros, all plans combined. However, this sum may vary thanks to survivors’ pensions, which are received by widowed pensioners. In this case, the pension can reach 1,649 euros per month on average.

In total, according to the publication of the DREES, the solidarity schemes represent 16.3% of the total direct pensions paid. For 2016, it is even estimated that 14.9 million retirees were affected by these independent systems. Among them, the aid for the minimum pension and the aid distributed to a retired parent and parent of at least three children are worth 8 and 8.5 billion euros of the total amount of pensions.

In the list of other devices, it is essentially the number of annuities and points that are used to calculate the pension. In total, the cost generated by this system is estimated at 10.1 billion euros, which is equivalent to 3.8% of total pensions.

In 2016, 12% of retirees lived with a median annual standard of living of 12,050 euros, or the equivalent of 1,004 euros per month. 23% of retirees received, for their part, 37,370 euros per year, or 3,114 euros per month. In this context, the wealthiest 20% had a median standard of living 2.9 times higher than the poorest 20%.

Therefore, 50% of the pension of the most modest French people, receiving less than 680 euros per month, comes from aid for retirees. Among them are the minimum pensions, as well as the quarterly compensation and increase. Consequently, it is necessary for the pension level of retirees to increase in order for these solidarity mechanisms to decrease.